Sponsors(s): Senator Dial
Summary/Synopsis: Under existing law, the state imposes sales or use taxes upon certain persons, firms, or corporations. Sales of certain items are taxed at a reduced rate. Sales of other items are exempt from the taxes.
This bill would increase the state sales and use tax general rate to four and one-quarter percent on September 1, 2014, to four and one-half percent on September 1, 2015, to four and three-quarters percent on September 1, 2016, and to five percent on September 1, 2017.
This bill would phase out the state sales and use taxes on food over a four-year period by reducing the rates by one percentage point per year beginning September 1, 2014.
This bill would phase out the state sales and use taxes on food sold through coin-operated dispensing machines over a three-year period by reducing the rates by one percentage point per year beginning September 1, 2015.
This bill would exempt sales of food, including food sold through coin-operated dispensing machines, from the sales and use taxes beginning September 1, 2017.
League Action and Justification: MonitorLeague supports the ending of the sales tax on food. At the same time it advocate for less reliance on regressive taxes. This legislation compensates for the lost revenue from the sales tax on food by increasing the sales tax on nonfood items.
Bill Progress in Legislature:01/28/2014: First Reading and referred to the
02/26/2014: Read for the 2nd time and placed on the calendar; pending 3rd Read and Favorable from FT&E
04/01/2014: Indefinitely Postponed