Georgia House Bill HB851

Georgia 2023-2024 Regular Session

• Introduced: 11/22/23

Caption

Sales and use tax; sale of food and food ingredients to individual consumers for off-premises human consumption; exempt

Impact

Should HB 851 be enacted, it will significantly alter the landscape of sales taxes applied to food purchases. The exemption from local sales taxes could lead to lower prices for consumers purchasing food for home preparation. This bill seeks to promote access to food by reducing additional costs associated with local sales taxes, potentially benefiting lower-income families disproportionately impacted by such taxes. Furthermore, it could encourage separate tax structure alignment across different jurisdictions within Georgia regarding food sales.

Summary

House Bill 851 aims to amend the sales and use tax regulations in Georgia, specifically by exempting the sale of food and food ingredients purchased by individual consumers for off-premises human consumption from local sales and use taxes. This change is intended to alleviate the financial burden on consumers purchasing food for consumption outside of restaurants and food establishments. The bill delineates what constitutes 'food and food ingredients,' clarifying that it does not include prepared food or over-the-counter drugs, thereby specifically targeting basic food items.

Contention

Notably, while supporters of HB 851 assert that such reforms are essential for consumer relief, opponents could raise concerns regarding the fiscal implications for local governments that depend on sales tax revenue. As local authorities rely on these funds to support community services, there are fears that exemptions could lead to budgetary shortfalls, hindering essential services like education and public safety. The balance between consumer benefits and local fiscal health remains a critical point of contention in the discussions surrounding this bill.