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 amount, 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 adhering to these guidelines, thereby providing a level of protection for consumers against rising food costs.

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 approved a tax at a rate below 2%, any increase must be voter-approved and capped at 2%. Conversely, jurisdictions that have not approved a tax must also seek voter approval for any future tax or increase, with similar limitations. 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