Bill sponsored by Danny McCormick eliminates local sales tax on certain food and beverages

A House bill from an Oil City legislator is proposing exemption of certain foods and beverages from local sales tax.

HB 229, drafted by Oil City Republican Representative Danny McCormick, establishes a mandatory local sales and use tax exemption for sales of the types of foods and beverages that are currently exempted from state sales and use tax.

Here’s what you should know.

What food and beverages fall under this proposed legislation?

The Louisiana Constitution establishes that the state sales and use tax shall not apply to sales or purchases of food for home consumption as defined in present law.

Currently, the following food and beverage items are exempt from the state sales and use tax:

• Food sold for home preparation and consumption including bakery products
• Dairy products
• Soft drinks
• Fresh fruits and vegetables
• Package foods requiring further preparation by the purchaser

The proposed law extends the sales tax exemption on food and beverage items for home consumption to local sales and use tax sales thereby making purchases of these items exempt from both state and local sales and uses taxes.

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