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 2% of the base, effective retroactively from January 1, 2025, subject to voter approval. It stipulates that any adoption or increase of such taxes must be approved by voters 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 public consent, thereby protecting consumers from potential tax hikes.

Additionally, the resolution outlines specific provisions for cities that have already approved a TPT on food items before January 1, 2025, as well as those that have not. For those with an existing tax below 2%, any increase must be voter-approved and capped at 2%. For jurisdictions without an approved tax, any new tax or increase must also be voter-approved and cannot exceed 2%. The resolution mandates that the Secretary of State submit this proposition to voters at the next general election, and it 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