SB 656

Under current law, generally, the sale of food and food ingredients is exempt

from the sales and use tax. The exemption, however, does not apply to candy, soft

drinks, dietary supplements, and prepared food. Under current law, for sales and use

tax purposes, prepared food does not include, among other things, two or more food

ingredients that are mixed or combined by a retailer for sale as a single item sold

unheated, and sold by volume or weight. Prepared food also does not include eggs,

fish, meat, and poultry, and foods containing any of them in raw form, that requires

cooking by the consumer, as recommended by the federal food and drug

administration.

Under this bill, for sales and use tax purposes, prepared food also does not

include two or more food ingredients mixed or combined by a retailer for sale as a

single item, if one of the food ingredients is raw dough, the single item is sold in an

unheated state, and if the consumer is required to cook the single item before

consuming, as recommended by the retailer.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.