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S.F. No. 1075 - Sales tax exemption for food sold in vending machines
 
Author: Senator Warren Limmer
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: March 6, 2017



 

Under current law, food sold through vending machines is taxable regardless of whether a food item is otherwise exempt. This bill removes food sold through vending machines from taxable food items so that items that are exempt from sales tax when purchased at retail other than through a vending machine are also exempt when sold through a vending machine. In addition, prepared food, candy, and soft drinks, which are generally taxable, are exempt when served at residential facilities and schools, and exclusively for seniors and disabled persons by government agencies, nonprofits, churches, or through a program funded by specified federal grants. The bill specifies that taxable food sold in vending machines at these facilities is still taxable. Effective for sales and purchases made after June 30, 2017.

Section

Provision

1

Removes food sold through vending machines from the list of taxable food items within the definition of “sale and purchase.”
 

2

Amends the definition of “food sold through vending machines” to specify that taxable food sold through vending machines means prepared food, soft drinks, and candy dispensed from a vending machine.
 

3

Removes food sold through vending machines from the list of items that are taxable under the definition of “food and food ingredients.”
 

4

Specifies that taxable food sold through vending machines at residential facilities is not exempt. 
 

5

Specifies that taxable food sold through vending machines at schools is not exempt.
 

6

Specifies that taxable food sold through vending machines in connection with certain government programs or nonprofit organization services is not exempt.

 
 
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