HB 2

This bill enacts the "End the Grocery Tax by Closing Corporate Loopholes Act, which generally eliminates the 4% sales tax on the retail sale of food and food ingredients for human consumption (""groceries""). However, "" food and food ingredients "" does not include alcoholic beverages, tobacco, candy, dietary supplements, or prepared food . REVENUE IMPLICATIONS Education Present law requires the commissioner of revenue (""commissioner"") to deposit r evenue generated from 0.5% of the tax rate placed on groceries into the state general fund and earmark it for education purposes for kindergarten through grade twelve (K-12) regardless of whether the tax rate on groceries is reduced below 6%. This bill removes this provision. Counties and Municipalities Present law requires the commissioner to allocate and distribute to counties and municipalities an amount substantially equal to the amount that would have been allocated but for the temporary exemption from sales tax applicable to the retail sale of groceries between 12:01 a.m. on August 1, 2023, and 11:59 p.m. on October 31, 2023 . The allocation provided must be based on the reporting of exempt sales of groceries during the exemption period and any other data or information the commissioner deems relevant. This bill removes the temporary nature of this provision and makes the al location permanent."