SENATE BILL REPORT

SB 6007

BYSenators Johnson, Smitherman, Bailey and Kreidler

Making the sales and use tax applicable to candy and gum and depositing the revenues from such tax in the drug enforcement and education account.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 16, 1989

Senate Staff:Terry Wilson (786-7715)

AS OF MARCH 14, 1989

BACKGROUND:

The state 6.5 percent sales and use tax does not apply to food products for human consumption, including candy and gum.  The food exemption was originally enacted by initiative and was effective July 1, 1978.  The tax was temporarily reimposed between May 1, 1982, and July 1, 1983.

SUMMARY:

The sales and use tax is reimposed on candy and gum. 

The Department of Revenue is required to annually determine the approximate percentage of sales and use tax revenues that are collected on candy and gum.  The following year, this percentage of tax revenues is to be deposited into the drug enforcement and education account created in Senate Bill No. 5832 or House Bill No. 1793 if enacted or into an account which may only be used for the purposes stated in Senate Bill No. 5832.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available