Budget & Taxes (Business Taxes)

HB 5006 eliminates a 1% sales and use tax on meals sold by restaurants, caterers, and grocery stores. The bill directly affects these businesses by removing an additional tax on food sales, reducing their operational costs. Key provision: it amends tax law to remove the specific 1% surcharge applied to meals at these establishments. The purpose is to simplify the tax structure for food service providers without changing general sales tax rates. This is a direct policy change affecting food retailers and their customers through lower prices.

SB 2 exempts small businesses (with less than $10 million in annual revenue) from sales and use taxes on electricity and natural gas purchases. It redirects revenue from an additional 1% sales tax on meals: 50% to the state Tourism Fund and 50% to the municipalities where the meals were purchased. The bill aims to lower operating costs for small commercial and industrial businesses, which could reduce prices passed on to consumers. These changes directly affect small businesses and local governments through tax adjustments and new revenue allocation.

SB 66 would create a temporary tax deduction for workers who declare tips or gratuities on their income tax returns. It allows a deduction of up to $25,000 per year for tips earned during 2026-2028, reducing taxable income for affected workers. The deduction phases out for single filers with incomes over $150,000 and married couples filing jointly over $300,000. This policy directly impacts service industry workers who report tip income, lowering their tax burden for the specified period.