Bill No.: HB0093                  Drafter:  MQ

LSO No.:  07LSO-0340              Effective Date:  7/1/2007

Enrolled Act No.:  HEA0088

Chapter No.:

Prime Sponsor:     Representative Anderson, R.

Catch Title:       Sales tax on food-permanent exemption 2.

Subject:  Makes the sales and use tax exemption on food permanent.

Summary/Major Elements:

· Currently, food is exempt from sales and use tax through June 30, 2008.

· Bill makes that exemption permanent.

· Exemption is on sales of food for domestic home consumption.

· Repeals the optional ½ cent sales and use tax rate which may be imposed by the governor if it is determined that the unappropriated general fund balance at the end of the budget period minus any expected shortfall in revenue to fully fund the school foundation program for the following school year will exceed $35 million.

Comments:

· The bill does not contain provisions to distribute any revenue shortfall to the local governments; the Joint Revenue Interim Committee will be studying this issue during the 2007 interim.