House Bill 26-002

SECTION 1. SHORT TITLE

This act shall be known and cited as the “No Sales Tax on Food Act”. 

SECTION 2. DEFINITIONS

As used in this section, unless the context otherwise requires:

(a) “Baby supplies” means tangible personal property primarily intended for the care, nourishment, hygiene, or safety of infants and toddlers under three years of age.

(b) “Baby supplies” includes, but is not limited to:

(I) Diapers, including disposable and reusable diapers.

(II) Baby wipes.

(III) Infant formula.

(IV) Baby food, including prepared foods specifically marketed for infants and toddlers.

(c) “Food for domestic home consumption” has the same meaning as set forth in section 39-26-102.

SECTION 3. LEGISLATIVE DECLARATION

The general assembly hereby finds and declares that:

(a) Access to food and essential baby supplies is a basic necessity for the health, dignity, and well-being of residents of the state, particularly for families with young children and individuals living on fixed or limited incomes.

(b) Sales and use taxes applied to food and baby supplies disproportionately burden low- and moderate-income households, as these households spend a greater share of their income on necessities than higher-income households.

(c) Exempting food for domestic home consumption and essential baby supplies from the state sales and use tax promotes economic fairness and provides meaningful cost-of-living relief to families and caregivers across the state.

(d) Reducing the tax burden on essential goods supports public health outcomes by improving access to adequate nutrition and necessary infant care items during critical stages of early childhood development.

(e) It is the intent of the general assembly that this act focus narrowly on essential goods and not extend to discretionary or luxury items, while allowing the Department of Revenue to administer the exemptions in a clear, consistent, and enforceable manner.

(f) Therefore, the general assembly declares that exempting food and certain baby supplies from the state sales and use tax serves a legitimate public purpose and advances the general welfare of the people of the State of San Andreas.

SECTION 4. SALES AND USE TAX EXEMPTION FOR FOOD AND BABY SUPPLIES

(a) Notwithstanding any provision of law to the contrary, on and after the effective date of this act, there shall be exempt from the state sales tax and state use tax the sale, storage, use, or consumption of:

(I) Food for domestic home consumption.

(II) Baby supplies, as defined in section 1 of this act.

(b) This section applies only to the state sales and use tax and does not require any political subdivision of the state to exempt such items from a locally imposed sales or use tax.

SECTION 5. RULEMAKING AUTHORITY

The Department of Revenue may promulgate rules as necessary to implement this act, including rules to clarify eligible items and prevent abuse of the exemptions established by this act.

SECTION 6. EFFECTIVE DATE

Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a veto petition is filed pursuant to Article II, Section 15 of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2027 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.