HB 1767

This bill authorizes an exemption on the sales and use tax on the retail sale of food and food ingredients if such items are sold to a member of an eligible family. As used in such provision, an " e ligible family"" means a family that meets both of the following criteria:  An annual household income that does not exceed 300% of the amount required for a student to qualify for free or reduced price lunch, as provided in the income eligibility guidelines published by the United States department of agriculture's food and nutrition service .  A qualifying child or qualifying relative, as those terms are defined in federal law, claimed as a dependent for federal income tax purposes. This bill requires an eligible family that is seeking the exemption described above to submit an application for exemption to the commissioner of revenue, providing proof of eligibility that may be evidenced by submitting with the application a copy of the most recent federal income tax return as reported on form 1040. The application must be submitted on forms prescribed by the commissioner. If the exemption is approved by the commissioner, then this bill requires the department of revenue to issue a sales and use tax exemption certificate and wallet-sized card to the applicant that declares that the applicant is entitled to the exemption . An eligible family that has obtained an exemption certificate and card must present the card to a retailer or provide the retailer with a copy of the certificate of exemption that include s the exemption account number. The retailer must record the exemptio n account number and maintain a copy of such exemption in the retailer's records to document that the purchaser was entitled to the exemption."