Assigned to FIN                                                                                                        FOR CAUCUS & FLOOR ACTION

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

REVISED

FACT SHEET FOR S.B. 1106

 

food tax; definition; clarification

 

Purpose

 

Excludes from the definition of "cold sandwiches," prepackaged sandwiches purchased for home consumption that are not prepared simultaneously with the consumer’s order.

 

Background

 

Current statute exempts, from transaction privilege taxation (TPT), food not meant to be consumed on the premises it was purchased. Currently, “cold sandwiches” is undefined. This bill clarifies which types of "cold sandwiches" are eligible for the TPT exemption.  According to the Department of Revenue (DOR), this bill constitutes a slight expansion of the current TPT exemption.  It will eliminate a few pending audits with DOR.

 

S.B. 1106 excludes, from the definition of "cold sandwiches," prepackaged sandwiches purchased for home consumption that are not prepared at the same time of the consumer’s order. According to Joint Legislative Budget Committee staff, the fiscal impact of this bill is indeterminable but is probably minimal.

 

Provisions

 

1.      Excludes from the definition of "cold sandwiches" prepackaged sandwiches intended for home consumption that are not prepared or modified simultaneously with the consumer’s order.

 

2.      Makes technical changes.

 

3.      Provides for a general effective date.

 

Amendments Adopted by Committee

 

1.      Redefines the criteria for sandwiches to concur with the current definition of "for home consumption."

 

2.      Removes the requirement that sandwiches be packaged in a way that extends their shelf life to at least 24 hours.

 


Senate Action

 

FIN                  2/4/02              DPA    4-1-3-0

 

 

Prepared by Senate Staff

February 4, 2002