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 two percent. This bill would decrease the sales and use tax rates on food by one-half percent on September 1, 2026, and for each year after, until September 1, 2029, when food shall be exempt from state sales and use tax. This bill would allow counties and municipalities to adopt local exemptions of food from sales and use tax.

Statutes affected:
Introduced: 40-23-4