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HB 5410

AN ACT CONCERNING THE SALES AND USE TAXES IMPOSED ON MEALS SOLD BY AN EATING ESTABLISHMENT, CATERER OR GROCERY STORE.

2025 Regular Session Introduced by Jason Buchsbaum and 2 co-sponsors

HB 5410 reduces sales tax on meals to 4.35% and exempts certain grocery staples, providing cost savings for consumers and support for local food businesses.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#cateringestablishments #grocerystores #meals #restaurants #salesandusetax
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Bill Summary · HB 5410

Summary of HB 5410: An Act Concerning Sales and Use Taxes on Meals

Overview

HB 5410 is a bill introduced in the state legislature on March 14, 2025 that would make changes to the sales and use taxes imposed on meals sold by eating establishments, caterers, and grocery stores.

Key Provisions

  • Reduced Sales Tax Rate for Meals: The bill would lower the state sales tax rate on meals sold by eating establishments, caterers, and grocery stores from the current 6.35% to 4.35%.
  • Expansion of Tax Exemption for Groceries: In addition to the reduced sales tax rate on meals, the bill would exempt certain grocery items sold by these entities from the sales and use tax altogether. This would apply to "staple foods" such as bread, milk, eggs, fruits, and vegetables.
  • Definitions and Exclusions: The bill provides definitions for terms like "eating establishment", "caterer", and "staple foods" to clarify which sales would be subject to the new rates and exemptions. Certain prepared food items like alcoholic beverages would be excluded.

Potential Impact

  • Cost Savings for Consumers: The reduced sales tax rate and expanded grocery tax exemptions could lead to lower prices on meals and qualifying grocery items sold by restaurants, caterers, and grocery stores. This could provide financial relief for individuals and families.
  • Support for Food Service and Grocery Businesses: The tax changes may help eating establishments, caterers, and grocery stores remain more competitive and profitable, supporting these important local industries.
  • Potential Revenue Reductions for State: The sales tax reductions and exemptions in the bill could lead to a decrease in overall tax revenue collected by the state, which may need to be offset elsewhere in the budget.

Legislative Status

HB 5410 has been referred to the Joint Committee on Finance, Revenue and Bonding for further consideration and debate. The committee will likely hold public hearings and seek input from stakeholders before deciding whether to advance the bill for a full legislative vote.

Compiled from official sources — confirm details with the bill’s official record.

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