Food stamp purchases

From the 2024 DOR Tax Exemption Study

82.08.0297; 82.12.0297 - Food stamp purchases Description Items eligible for purchase with food stamps issued by the U.S. Department of Agriculture are exempt from sales and use taxes. This includes products such as soft drinks, vitamins, and cold, prepared deli items not considered as food items for home consumption. Purpose Federal law requires states to exempt food stamp purchases from sales tax as a condition of participation in the federal food stamp program. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $154.550 $156.150 $157.750 $159.360 Local Taxes $69.520 $70.230 $70.950 $71.680 Repeal of Repealing this exemption would increase revenues. However, the state would have exemption to forego participation in the federal food stamp program. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $143.130 $157.750 $159.360 Local Taxes $0.000 $64.380 $70.950 $71.680 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Annual growth rate of 3% based on historical exempt food deduction data. - Local revenue estimates use the statewide avera