ARIZONA STATE SENATE
Phoenix, Arizona
VETOED
FINAL
REVISED
food tax; definition;
clarification
Excludes from the definition
of "cold sandwiches," prepackaged sandwiches purchased for home
consumption that are not prepared simultaneously with the consumer’s order.
Statute exempts, from
transaction privilege taxation (TPT), food not meant to be consumed on the
premises it was purchased. "Cold
sandwiches" is currently undefined. S.B. 1106 clarifies which types of
cold sandwiches are eligible for the TPT exemption by excluding 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 the Department
of Revenue, this bill constitutes an expansion of the current TPT exemption and
will eliminate a few pending audits.
According to Joint Legislative Budget Committee staff, the fiscal impact
of this bill cannot be determined but is probably minimal.
In her veto message, the
Governor states that this legislation creates a new TPT exemption for food
items that have always been taxable.
She suggests that, given the State's present fiscal circumstances, it is
not appropriate to carve out another exemption for a select group at this time.
1. Excludes from the definition of "cold sandwiches" prepackaged sandwiches intended for home consumption that are not prepared or modified at the same time of 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 House
Action
FIN 2/4/02 DPA 4-1-3-0 WM 4/9/02 DP 5-2-0-3
3rd Read 2/13/02 20-10-0-0 3rd Read 4/25/02 37-17-6-0
Vetoed by Governor 5/2/02
Prepared by Senate Staff
June 4, 2002