This bill proposes the repeal of section 144.014 of the Revised Statutes of Missouri and enacts a new section that modifies the state's sales tax on food. Starting October 1, 1997, a one percent sales tax on retail food sales will be imposed, with the revenue directed to the school district trust fund. However, beginning January 1, 2027, the bill stipulates that no state sales or use tax will be levied on retail food sales, although local sales taxes will still apply. If this exemption is not reauthorized, the one percent tax will be reinstated after three years. Additionally, the bill clarifies the definition of "food" to include items eligible for purchase with Supplemental Nutrition Assistance Program (SNAP) benefits, while excluding prepared food from establishments where more than 80% of gross receipts come from food prepared for immediate consumption. The bill also includes provisions for the sunset of the exemption, which will last three years unless reauthorized by the General Assembly, with a potential twelve-year extension if reauthorized.

Statutes affected:
Introduced (5727H.01): 144.014