ARIZONA
HOUSE OF REPRESENTATIVES
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HB 2484: local food tax; equality |
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PRIME SPONSOR: Representative Shope, LD 8 BILL STATUS: Caucus & COW |
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Relating to municipal food taxes.
Provisions
1. Requires municipalities and other taxing jurisdictions that impose a TPT or use tax on the sale of food, for home or premises consumption, to apply the tax uniformly and without any additional tax or fee differential for any specific food item. (Sec. 2)
2. Prohibits a municipality or other taxing jurisdiction from imposing a TPT or use tax on:
a. The manufacture, wholesale or distribution of food, for home or premises consumption; and
b. Any container or packaging for transporting, protecting or consuming food at home or on premises. (Sec. 2)
3. Makes conforming changes. (Sec. 1, 2)
Current Law
The sale of food for home consumption is exempt from state TPT (A.R.S. § 42-5102). However, a municipal tax may be levied on food for home consumption and food for consumption on the premises as permitted by MCTC §§ 4-455 and 4-462
Additional Information
TPT is imposed on a vendor for the privilege of conducting business in Arizona. Under this tax, the seller is responsible for remitting to the state the entire amount of tax due based on the gross proceeds or gross income of the business. While the tax is commonly passed on to the consumer at the point of sale, it is ultimately the seller’s responsibility to remit the tax. TPT is broken down into 16 different classifications, one of which is the retail classification. The retail classification is comprised of businesses selling tangible personal property at retail.
Use tax is assessed on items purchased in other states and brought into Arizona for storage, use, or consumption and for which no tax or a tax at a lesser rate has been paid in another state. Use tax is imposed on all transactions in which TPT was not.
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Fifty-third Legislature HB 2484
Second Regular Session Version 2: Caucus & COW
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