Lower the state sales tax rate and the state use tax rate on food to two and one-half percent.
Impact
The implications of HB1095 on state law are notable. By lowering food taxes, the bill modifies existing statutes concerning the sale and use of food and food ingredients in the state. This change is expected to stimulate economic activity, as decreased food prices may encourage consumer spending in other areas. However, the potential reduction in sales tax revenue collected by the state may create budgetary challenges, requiring adjustments in state spending, especially in areas heavily reliant on such tax revenues.
Summary
House Bill 1095 seeks to amend the current sales tax regulations in South Dakota by lowering the state sales tax rate and the state use tax rate on food to 2.5%. This legislative move aims to provide economic relief to consumers, particularly for lower-income households who allocate a significant portion of their budget to purchasing food. By reducing the tax burden on essential items like food, the bill is anticipated to improve overall affordability for families across the state.
Contention
Debates surrounding HB1095 may center on its fiscal implications for state budgeting and resource allocation. Proponents of the bill are likely to argue for the necessity of supporting residents through economic relief measures, highlighting the importance of affordable food access. Conversely, opponents might raise concerns about the sustainability of state revenue, cautioning that significant tax cuts could lead to reductions in essential services funded by sales tax income. The balance between consumer relief and maintaining state services will be a key topic of contention during discussions.
Lower the state sales tax rate and the state use tax rate on food to zero percent, and to increase certain gross receipts tax rates, excise tax rates, and use tax rates.
Lower the state sales tax rate and the state use tax rate on food to zero percent, and to repeal a conditional reduction of certain gross receipts tax rates.
To refer to the voters the question of whether this state should lower the state sales and use tax rate on food to zero percent, and to increase certain gross receipts tax rates, excise tax rates, and use tax rates.
To amend Sections 40-23-1 and 40-23-4, as last amended by Act 2022-291, Act 2022-293, Act 2022-373, and Act 2022-199, 2022 Regular Session, Code of Alabama 1975, related to sales taxes; to define food and exempt sales of food from state sales and use taxes; to establish the local sales tax rate on food for purposes of county and municipal sales and use taxes as the existing general or retail local sales tax rate; and to allow a local governing body to reduce the local sales tax rate or exempt food from local sales and use taxes.
Relating to sales and use taxes; to amend Sections 40-23-1, 40-23-2, 40-23-60, and 40-23-61, Code of Alabama 1975, to define "food" and begin reducing the state sales and use tax on food on September 1, 2023; to require certain growth targets in the Education Trust Fund for future sales tax reductions on food; to establish the sales and use tax rate on food for purposes of county and municipal sales and use taxes as the existing general or retail sales and use tax rate; and to provide for the levy of sales and use tax on food by counties and municipalities.
Modifies provisions relating to estate planning, including notice for transfers of the principal place of administration of a trust, electronic wills, and estate planning during the COVID-19 state of emergency