The resolution H.C.R. 2021 proposes to cap municipal transaction privilege taxes (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, 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. The resolution also outlines that cities or towns that have already imposed a TPT on food items must adhere to these new regulations, while those that have not yet imposed such taxes will also need voter approval for any future taxes or increases.

Additionally, the resolution clarifies that no city, town, or taxing jurisdiction can levy a TPT on food items intended for home consumption unless they comply with the outlined requirements. 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 voters and proclaimed by the Governor. There is no anticipated fiscal impact on the state General Fund, as the state does not currently levy TPT on food for home consumption, although municipal TPT collections may be affected.

Statutes affected:
Introduced Version: 42-6015
House Engrossed Version: 42-6015