PROHIBIT LOCAL EXCISE TAXES ON FOOD

House Bill 4999 as introduced

Sponsor:  Rep. Rob VerHeulen

Committee:  Michigan Competitiveness

Complete to 9-26-17

SUMMARY:

HB 4999 would create a new act to prohibit local units of government from imposing an excise tax on, or administering any policy imposing a tax or fee on, the manufacture, distribution, or sale of food. The prohibition would apply to food for immediate and non immediate consumption, and would be in effect except as otherwise provided by federal or state law.

"Food" is defined in the bill as "articles used for food or drink for humans or other animals, chewing gum, and articles used for components of any such article."

FISCAL IMPACT:

The bill would have no fiscal impact on state or local government relative to current law. Currently, no local unit of government has instituted or sought to institute a local excise tax, fee, or other tax on the manufacture, distribution, wholesale, or retail sale of food for immediate consumption or nonimmediate consumption. The provisions of the bill would prohibit prospective actions to institute an excise tax, fee, or other tax.

                                                                                        Legislative Analyst:   Patrick Morris

                                                                                                Fiscal Analyst:   Ben Gielczyk

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.