House Bill 169

Chair's Name: Larry O�Neal

Committee: Ways & Means

House Sponsor:  Chuck Martin

HB 169 provides an exemption from sales and use tax for prepared food and beverages that are donated to a qualified nonprofit agency to be used for hunger relief or disaster relief. This exemption will remain in effect from July 1, 2007 to June 30, 2009.

The committee substitute received a Do Pass recommendation from the Ways & Means Committee and comes to the House Floor under the Structured Rule. 

Chairman O�Neal�s opinion of this legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

HB 169 creates a two year sales tax exemption for prepared food and beverages donated to non-profit organizations that provide hunger relief or donated following a natural disaster.

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

Currently, if a business donates prepared food to charity, they are required to pay use tax at the full retail value despite that they are not receiving any revenues on this food.

THIS LEGISLATION:

• Reduces the Tax Burden on our Citizens:

This bill reduces the tax burden on businesses that choose to donate prepared food rather than throw it away.

• Increases Personal Responsibility:

This bill encourages giving to those that are in need rather than throwing food away.