STATEMENT OF PURPOSE
RS29158 / H0448
This legislation repeals the sales tax on food sold for human consumption, using the definition of food products
provided under the Federal Supplemental Nutrition Assistance Program (SNAP), excluding prepared food.
To offset the reduction in sales tax revenue sharing amount to local units of government, the bill increases
the revenue sharing percentage to the units and saves $13 million which would have been transferred to
transportation in revenue sharing.
FISCAL NOTE
For FY 2023, the total net impact to the General Fund is a decrease of $256 million. This includes the loss
in revenue from sales tax collections on food at $269 million. Increasing the revenue sharing to local units of
governments, from 11.5 percent to 12.9 percent is estimated to be $30 million in payout from the sales taxes
which also would have been paid out without this bill (so there is no effect on the general fund). There is
approximately $13 million for transportation revenue sharing reduction. The total impact to the General Fund
nets to a decrease of $256 million.
Regarding local governments, the local revenue sharing distribution of state generated sales taxes is increased
by a percentage sufficient to entirely offset the reduction in revenue sharing due to the reduction in sales tax
collections. There will be minimal changes to local government revenues.
Contact:
Representative Ron Nate
(208) 332-1000
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 01/19/2022, 8:53 AM