FINAL BILL REPORT

HB 1507

                                  C 103 L 88

BYRepresentatives Appelwick, Taylor, Grimm, Haugen, Holland and Locke; by request of Governor Gardner

Revising the sales and use tax exemptions for food products sold by vendors required to have a worker's permit under RCW 69.06.010.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

Food sold for human consumption is generally exempt from the retail sales tax.  The exemption does not apply to the following:  food product sold in an establishment having tables, chairs or counters; a food product sold for immediate consumption on or near the premises even though the food may be packaged or wrapped; a food product sold for consumption within a place having an admission charge; or a food product sold from a vending machine (in which case the tax is levied on 57 percent of the sales).

A delicatessen having eating facilities must charge tax on sandwiches even though they may be sold on a take-out basis.  On the other hand, the same sandwich sold from a supermarket not having eating facilities is not subject to tax.

SUMMARY:

The sales tax is extended to some prepared food for which retail vendors are required to have a food handler's permit to prepare the item for sale.  Included are:  sandwiches, prepared chicken or chicken cooked on the premises, delicatessen trays, home delivered pizzas or meals, and salad bars.

Exemptions from the sales tax even though a food handler's permit is required are: raw meat and fish; meat and cheese sliced and wrapped by store employees; baked goods from bakeries that sell only baked goods; baked goods from combination bakeries when not sold as part of meals and bulk foods sold from bins and barrels such as flour, fruits and vegetables.

VOTES ON FINAL PASSAGE:

      House 71  25

      Senate    28    21 (Senate amended)

      House 69  26 (House concurred)

EFFECTIVE:June 1, 1988