SCS HB 548 -- TAXATION

This bill changes the definition of food subject to the reduced
state sales tax rate to not include certain prepared food and
drink sold for immediate consumption on or off the premises of
an establishment if such types of sales constitute more than 80%
of the sales of the establishment.  The establishments include
restaurants, fast food restaurants, delicatessens, eating
houses, or cafes.

The bill also modifies the income tax credit for contributions
to certain domestic violence centers and maternity homes.  The
bill defines contributions to mean donations of cash, stock,
bonds, or other marketable securities or real property and
allows domestic violence centers and maternity homes to decline
a contribution from a taxpayer.

HB 548 -- SALES TAX ON FOOD (Kennedy)

This bill changes the definition of food subject to the reduced
state sales tax rate to not include certain prepared food and
drink sold for immediate consumption on or off the premises of
an establishment if such types of sales constitute more than 80%
of the sales of the establishment.  The establishments include
restaurants, fast food restaurants, delicatessens, eating
houses, or cafes.

FISCAL NOTE:  Estimated Net Income to General Revenue Fund of
Unknown in FY 2000, FY 2001, and FY 2002.  Additional revenue
expected in unknown amounts.

HB 548 -- SALES TAX ON FOOD

SPONSOR:  Kennedy

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Ways and Means by a vote of 16 to 0.

This bill changes the definition of food subject to the reduced
state sales tax rate to not include certain prepared food and
drink sold for immediate consumption on or off the premises of
an establishment if such types of sales constitute more than 80%
of the sales of the establishment.  The establishments include
restaurants, fast food restaurants, delicatessens, eating
houses, or cafes.

FISCAL NOTE:  Estimated Net Income to General Revenue Fund of
Unknown in FY 2000, FY 2001, and FY 2002.

PROPONENTS:  Supporters say that this bill will fix problems
that resulted from the passage of the reduced sales and use tax
rate on certain foods sold through certain retailers.

Testifying for the bill were Representative Kennedy; Missouri
Retailers Association; Missouri Grocers Association; Missouri
Restaurant Association; and McDonalds, Inc.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Assistant Director of Research

HB 548 -- Sales Tax on Food

Sponsor:  Kennedy

This bill changes the definition of food subject to the reduced
state sales tax rate to not include certain prepared food and
drink sold for immediate consumption on or off the premises of
an establishment if such types of sales constitute more than 80%
of the sales of the establishment.  The establishments include
restaurants, fast food restaurants, delicatessens, eating
houses, or cafes.