3.101 -Exemption for Food

Item	Description	FY2009	FY2010	FY2011
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 6.25%. The Governor's FY11 Budget proposal would eliminate the sales tax exemption on candy and soft drinks. The estimate for this item reflects the FY2011 value of this change. The Department of Revenue estimates that, as a result of this change, the state would collect $61.6 million in FY2011 in additional revenues (10 month impact). Origin: M.G.L. c. 64H, S. 6(h) and (kk) Estimate: $587.6	503.2	612.1	587.6

Key:

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