The resolution H.C.R. 2021 proposes to cap the municipal transaction privilege tax (TPT) on food and certain beverages intended for home consumption at a maximum rate of 2% of the base, effective retroactively from January 1, 2025. It requires that any adoption or increase of such taxes must receive voter approval and prohibits any increases in the 24 months leading up to June 30, 2027. This measure aims to ensure that cities and towns cannot impose additional taxes on food items without adhering to these stipulations, thereby providing financial relief to consumers.

Additionally, the resolution outlines specific provisions for cities and towns that have either approved or not approved such taxes by the specified date. For those that have already imposed a tax at a rate below 2%, any increase must be voter-approved and cannot exceed the 2% cap. Conversely, jurisdictions that have not yet approved a tax must also seek voter approval for any future tax or increase, adhering to the same 2% limit and 24-month restriction. The Secretary of State is tasked with submitting this proposition to voters at the next general election, and the measure will take effect only if approved by the electorate and proclaimed by the Governor.

Statutes affected:
Introduced Version: 42-6015
House Engrossed Version: 42-6015
Transmitted to Secretary of State: 42-6015