GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 123

Short Title:  Eliminate Food Tax.	(Public)

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Sponsors: Representatives Decker; Starnes, Wood, and Capps.

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Referred to:  Finance.

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February 12, 1997

A BILL TO BE ENTITLED
AN ACT TO ELIMINATE THE STATE SALES TAX ON FOOD.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.4(a)(5) reads as rewritten:
"(5)	The following rates apply to the sales price of food that is not otherwise exempt pursuant to G.S. 105-164.13 but would be exempt pursuant to G.S. 105-164.13 if it were purchased with coupons issued under the Food Stamp Program, 7 U.S.C. § 51:
Effective Dates	Rate
January 1, 1998, through December 31, 1998 – two percent (2%)
January 1, 1999, through December 31, 1999 – one percent (1%)."
Section 2.  Effective January 1, 2000, G.S. 105-164.4(a)(5) is repealed.
Section 3.  Effective January 1, 2000, Article 5 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-164.13B.  Food exempt from tax.
The taxes imposed by this Article do not apply to food that is not otherwise exempt pursuant to G.S. 105-164.13 but would be exempt pursuant to G.S. 105-164.13 if it were purchased with coupons issued under the Food Stamp Program, 7 U.S.C. § 51."
Section 4.  Sections 2 and 3 of this act become effective January 1, 2000, and apply to sales made on or after that date.  The remainder of this act becomes effective January 1, 1998, and applies to sales made on or after that date.