HLS 161ES-195 ORIGINAL 2016 First Extraordinary Session HOUSE CONCURRENT RESOL UTION NO. 3 BY REPRESENTATIVE HAVARD TAX/SALES-USE-EXEMPT: Urges and requests the Department of Revenue to reexamine their revenue ruling determination that a certain rate reduction and tax exemption is applicable to sellers of nonprepared foods 1 A CONCURRENT RESOL UTION 2To urge and request the Department of Revenue to reexamine their revenue ruling 3 determination that a certain rate reduction and tax exemption is applicable to sellers 4 of nonprepared foods. 5 WHEREAS, the sale of food and food ingredients, which constitute nonprepared 6foods should be taxable; and 7 WHEREAS, examples of nonprepared foods are milk, flour, eggs, meats, vegetables, 8gelatins, salt, ketchup, potato chips, candy, chewing gum, and soft drinks in bottles or cans; 9and 10 WHEREAS, nonprepared foods are eligible for the reduced rate or exemption 11without regard to package size or quantity of product sold; and 12 WHEREAS, all sales of nonprepared food by grocery stores, delicatessens, meat and 13seafood markets, convenience stores, variety stores, department stores, and other retailers 14for home consumption are eligible for the reduced state sales tax rate or exemption; and 15 WHEREAS, if the aforementioned products are sold by restaurants, drive-ins, snack 16bars, candy and nut counters, private clubs or other establishments providing on-premises 17facilities for the consumption of the food, they are not eligible for the reduced rate or tax 18exemption; and Page 1 of 3 HLS 161ES-195 ORIGINAL HCR NO. 3 1 WHEREAS, when convenience stores sell prepared food and nonprepared food 2together, the prepared food is taxed at a higher rate than the nonprepared food during the 3same transaction; and 4 WHEREAS, sellers who sale food products in the identical unheated conditions in 5which the products were acquired from wholesalers, and who also sell similar products that 6they themselves have prepared, must apply different state sales tax rates to the two classes 7of food; and 8 WHEREAS, in cases where sellers of nonprepared foods have no information at the 9times of sales to indicate that the food purchased from them is other than for home 10consumption, but the actual consumption of the food is other than in homes, the purchasers 11will be required to remit a use tax to the department equal to the difference between te 4 12percent state sales tax rate that was due on the food purchased, and the state sales tax rate 13that was actually remitted to the vendors; and 14 WHEREAS, purchasing nonprepared foods for immediate consumption at a 15convenience store are eligible for exemption if the staff does not assist in heating the 16nonprepared food although the nonprepared food is heated using the sellers equipment; and 17 WHEREAS, taxing prepared foods and nonprepared foods at the same rate will 18eliminate any confusion with regards to the taxation rates of the particular foods; and 19 WHEREAS, the benefit derived from added economic activity from the taxation of 20nonprepared foods will assist in generating more revenue for the state during our current 21fiscal crisis. 22 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby 23urge and request the Department of Revenue to reevaluate and remove the reduced rate and 24tax exemption applicable to certain sellers of nonprepared foods. 25 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the 26secretary of the Department of Revenue. Page 2 of 3 HLS 161ES-195 ORIGINAL HCR NO. 3 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HCR 3 Original 2016 First Extraordinary Session Havard Urges and requests the Dept. of Revenue to reevaluate their revenue ruling determining the rate reduction and tax exemption applicable to certain retail sellers of nonprepared food. Page 3 of 3