TO AMEND THE SALES TAX EXEMPTION FOR FOOD, FOOD INGREDIENTS, AND PREPARED FOOD SOLD IN A PUBLIC, COMMON, HIGH SCHOOL, OR COLLEGE CAFETERIA OR DINING FACILITY.

Fiscal Impact Statement Bill: HB1851 Bill Subtitle: TO AMEND THE SALES TAX EXEMPTION FOR FOOD, FOOD INGREDIENTS, AND PREPARED FOOD SOLD IN A PUBLIC, COMMON, HIGH SCHOOL, OR COLLEGE CAFETERIA OR DINING FACILITY. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Rep. Jean and Sen. Crowell Basic Change: HB1851 clarifies the sales tax exemption for the sale of food by a public school or college cafeteria. Under current law, the sale is exempt if: • The sale occurs in a public, common, high school, or college cafeteria or lunchroom; • The cafeteria or lunchroom is operated primarily for teachers and pupils and is not operated primarily for the public; and • The cafeteria or lunchroom is not operated for profit. HB1851 clarifies that if the school or college has entered into a contract with a third-party contractor to provide services or management for the cafeteria or lunchroom, the exemption may still apply even if the third-party contractor is operated for profit. HB1851 is effective on the first day of the calendar quarter following the effective date of the act. Fiscal Impact: None. Taxpa