Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2010

Governor's Budget Recommendation FY 2010

3.101 -Exemption for Food


Item DescriptionFY2008 FY2009 FY2010
3.101 Exemption for Food
Food for human consumption is exempt from sales tax, including food purchased with federal food stamps. The exemption does not cover meals served in restaurants and similar establishments. Meals are taxed under the sales tax at a rate of 5%.

The Governor's FY10 Budget proposal would eliminate the sales tax exemption on candy and soft drinks, including sales from vending machines, effective April 1, 2009. The estimate for this item reflects the FY2010 value of this change. The Department of Revenue estimates that, as a result of this change, the state would collect $11.7 million in FY2009 and $70 million in FY2010 in additional revenues.

Origin:  M.G.L. c. 64H, S. 6(h) and (kk)
Estimate:  $415.5
460.4 467.5 415.5

Key:

ORIGIN  
M.G.L. Massachusetts General Laws
ESTIMATES All estimates are in $ millions.


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