The proposed bill would amend current statutes regarding the transaction privilege tax (TPT) levied by cities and towns on food items. Under current law, a city or town is prohibited from levying a TPT on food or items purchased using Supplemental Nutrition Assistance Program (SNAP) benefits or WIC food instruments. The bill would expand this prohibition to include any food or items eligible for purchase with SNAP or WIC benefits, regardless of the purchaser's eligibility for these programs. This change aims to ensure that no transaction privilege tax is applied to food items that meet the eligibility criteria.

Additionally, the bill includes provisions for retroactive application to taxable periods beginning on or after the first day of the month following the general effective date, along with technical changes to the language of the statute. The overall intent is to clarify and strengthen the existing protections against local taxation on essential food items, thereby supporting low-income families who rely on these benefits.

Statutes affected:
Introduced Version: 6-403