Bill
HB 2766
HB 2766: AZ standardizes food tax (home-use exempt except candy/soda); IL clarifies rebates ban by allowing certain noncash, value-added insurer perks with safeguards.
Note: The available document appears to include text from two different measures both labeled HB 2766 (one amending Arizona’s municipal tax law and one amending Illinois’s Insurance Code). The summary below separates and succinctly describes each component, followed by combined procedural status and likely impacts.
Purpose: Standardize and limit municipal taxes on food sales and preserve exemptions for most food sold for home consumption.
Key provisions
- Requires any municipal transaction privilege/sales/use/franchise tax on food intended for human consumption to be applied uniformly (no item‑specific differentials) for both:
- Food sold for home consumption; and
- Food sold for consumption on the premises.
- Explicitly prohibits cities, towns, or other taxing jurisdictions from levying such taxes on the sale of food items intended for home consumption — with a carve‑out: “candy, confectionaries, soft drinks and soda” are not included in that exemption (i.e., those remain taxable).
- Confirms existing exemptions for:
- Manufacture/wholesale/distribution of food to wholesalers/retailers;
- Containers/packaging used exclusively for food;
- Food purchased with federal food stamps or certain child nutrition benefits;
- Low‑cost food sold to eligible elderly, homeless, or disabled persons under approved SNAP program arrangements.
- Effective date: from and after December 31, 2025.
Who is affected
- Municipal governments (taxing jurisdictions), food retailers, restaurants, food manufacturers/distributors, recipients of federal nutrition benefits.
Purpose: Clarify that the statutory prohibition on rebates does not prevent insurers/producers from offering certain non‑cash, value‑added products or services (at no or reduced cost) when they relate to coverage and meet specified consumer‑protection conditions.
Key provisions
- Permits insurers, producers, employees, affiliates, or third‑party representatives to offer value‑added products or services (not specified in the policy) at no or reduced cost when the product/service:
- Relates to the insurance coverage and is primarily designed to satisfy enumerated objectives (examples include loss mitigation, reducing claim costs, risk education/monitoring, enhancing health or financial wellness, post‑loss services, incentivizing healthier behavior, or assisting administration of employee/retiree benefit coverage).
- Conditions and consumer protections:
- Cost of the product/service must be reasonable in relation to the customer’s premiums or coverage class.
- Insurer/producer must provide customer contact information for questions.
- Availability must be based on documented objective criteria, not unfairly discriminatory; documentation must be maintained and produced to the Department on request.
- Department director may adopt rules addressing consumer data/privacy, disclosure, and unfair discrimination.
- Pilot/testing programs may be used (up to one year) with Department notification in advance; may proceed unless the Department objects within a specified period.
- Other clarifications:
- Allows offering child passenger restraint systems/discounts tied to safety compliance.
- Permits non‑cash gifts/items and raffles/drawings under rules (no cost to entrants; not unfairly discriminatory), with limits so the cost is not passed to others.
- Prohibits offering insurance as an inducement to buy another policy or advertising insurance using “free” or “no cost” when it would be misleading.
Who is affected
- Insurers, insurance producers/agents/brokers, policyholders, state insurance regulator, consumers receiving value‑added services.
If you want, I can:
- Produce a one‑page explainer focused only on the Arizona tax change or only on the Illinois insurance revision.
- Extract and format the exact statutory text changes for legislative tracking.
Compiled from official sources — confirm details with the bill’s official record.
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