SB 2511

This bill eliminates the tax on food retail sales at a 4% tax rate for food and food ingredients for human consumption, except for the following items, which must be taxed at the rate levied on the sale of tangible personal property at retail: prepared food, alcoholic beverages, candy, dietary supplements, and tobacco. MUNICIPAL TAXES Present law defines a " city tax rate "" to mean, with regard to a city or town that is located within a county that has not adopted the maximum rate of 2.75%, a rate adopted by the city or town that is equal to the difference between the county rate and the maximum rate authorized by state law . A city or town that has adopted a city tax rate may do either of the following :  Levy a tax on the retail sale of food and food ingredients within the jurisdiction of the city or town at a rate lower than the city tax rate levied for other privileges, goods, and services .  Exempt from the city tax rate the retail sale of food and food ingredients within the city or town. Present law requires t he incorporated city or town to furnish a certified copy of the adopted ordinance authorized to the department of revenue. The reduced tax rate or exemption becomes effective on the first calendar day of the month occurring at least 60 days after the department receives the certified copy. The reduced tax rate or exemption applies only to tax periods beginning on or after October 1, 2024. The levying of a reduced tax rate or an exemption is not subject to the approval of the voters . This bill removes the present law described under this heading."