Under existing law, the state imposes sales or use taxes upon certain persons, firms, or corporations at a general rate of four percent. Sales of certain items are taxed at a reduced rate, including food, which is taxed at three percent by the state. The definition of "food" for state sales and use taxes is applicable to county and municipal sales and use taxes and county and municipal governments may reduce their sales and use tax rate on food by 25 percent in any year in which certain growth targets are met. This bill would revise the provisions authorizing a county or municipal governing body to reduce their sales and use tax on food to eliminate the 25 percent limitation on the rate cut and remove the growth requirement.

Statutes affected:
Introduced: 40-23-40, 40-23-40