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 from 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, the bill stipulates that this tax will end on December 31, 2026. Beginning January 1, 2027, the bill establishes that no state sales or use tax will be levied on retail food sales in Missouri, although local sales taxes may still apply. The definition of "food" is updated to include items eligible for redemption under the Supplemental Nutrition Assistance Program (SNAP), replacing the previous references to food stamps and the Federal Food Stamp Program. Additionally, the bill clarifies that food sold by establishments where more than eighty percent of gross receipts come from prepared food for immediate consumption will not be considered "food" under this tax exemption.

Statutes affected:
Introduced (5819H.02): 144.014