AN ACT CONCERNING THE SALES AND USE TAXES IMPOSED ON MEALS SOLD BY AN EATING ESTABLISHMENT, CATERER OR GROCERY STORE.

HB 5994 would redirect the additional 1% sales tax collected on meals sold by restaurants, caterers, and grocery stores to the local municipalities where the sales occurred, rather than keeping the revenue at the state level. This bill directly affects businesses selling prepared meals (not groceries or takeout) and the local governments receiving the redistributed funds. The key provision changes how the tax revenue is distributed, requiring the state to send the collected tax dollars back to the specific towns or cities where the transactions happened. The bill does not alter the tax rate itself but changes the destination of the revenue stream.