HB613 (2005) Detail

Exempting prepared take-out food items sold in supermarkets from the meals and rooms tax.


HB 613-FN – AS INTRODUCED

2005 SESSION

05-0108

09/01

HOUSE BILL 613-FN

AN ACT exempting prepared take-out food items sold in supermarkets from the meals and rooms tax.

SPONSORS: Rep. Field, Merr 7

COMMITTEE: Ways and Means

ANALYSIS

This bill exempts prepared take-out food items sold in supermarkets from the meals and rooms tax.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-0108

09/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT exempting prepared take-out food items sold in supermarkets from the meals and rooms tax.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Meals and Room Tax; Taxable Meal. Amend RSA 78-A:3, X(c)(10) to read as follows:

(10) In accordance with the Food Security Act of 1985, meals purchased with food stamp coupons issued under the Food Stamp Act of 1977, as amended; provided, however, that when a meal is purchased in part with food stamp coupons, then only that part of the meal purchased with food stamp coupons is not a taxable meal;

(11) Prepared food items sold by supermarkets, which are hot or cold and wholly packaged on or off the premises, when the supermarket does not have a facility such as a counter, snack bar, coffee bar, cafeteria, or other indoor area on the premises of the supermarket where the prepared food item may be eaten.

2 Effective Date. This act shall take effect July 1, 2005.

LBAO

05-0108

Revised 2/17/05

HB 613 FISCAL NOTE

AN ACT exempting prepared take-out food items sold in supermarkets from the meals and rooms tax.

FISCAL IMPACT:

      The Department of Revenue Administration states this bill will decrease state revenue by an indeterminable amount in FY 2006 and each year thereafter. There will be no fiscal impact on state, county, and local expenditures or county and local revenue.

METHODOLOGY:

    The Department states this bill would exempt from the meals and rooms tax prepared food items sold by supermarkets, which are hot or cold, and wholly packaged on or off the premises, when the supermarket does not have a facility such as a counter, snack bar, coffee bar, cafeteria, or other indoor area on the premises of the supermarket where the prepared food may be eaten. The Department states it does not have meals and rooms data on supermarkets, or supermarkets without seating facilities, and is unable to determine the decrease in the meals portion of meals and rooms tax revenue that would result from passage of this bill. The Department estimates the meals portion of the meals and rooms tax at $152,746,000 in FY 2006, before factoring in this exemption. The distribution to the Education Trust Fund would not be in jeopardy, since that payment is from the rentals portion of the meals and rooms tax.