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

SB 739 would redirect the additional 1% sales and use tax collected on meals sold by restaurants, caterers, and grocery stores directly to the municipalities where the tax was generated. This bill changes how revenue from this specific tax is distributed, moving it from the state to local governments. The key provision requires that all revenue from this tax on meals be allocated to the specific cities or towns where the sales occurred. This affects businesses selling prepared meals (like restaurants and grocery stores selling ready-to-eat food) and the local municipalities receiving the funds.