House Committee agrees with Szabo: Undermining sales tax exemption for food is wrong

DENVER—Today, the House Local Government Committee approved of Senate Bill 094, which ensures food meant for home consumption remains eligible for a Colorado state sales tax exemption regardless of how the food is marketed. State Rep. Libby Szabo is sponsoring the measure in the House.

Under current law, food sold for home consumption at grocery stores, supermarkets or convenience stores is exempt from state sales taxes. Any “convenience food” that is prepared for immediate consumption, like hot food sold at restaurants, is taxable.

Recently, some municipalities in Colorado have attempted to levy taxes on foods for domestic consumption because they have been marketed as “convenience foods.” Szabo’s measure will end this overreaching practice.

“It’s almost unconscionable to see the lengths some will go to circumvent state and federal law in order to tax traditionally non-taxable food,” said Szabo, R-Arvada. “We’re in the middle of the worst recession in over 80 years. This bill protects struggling families and keeps government within its bounds.”

A number of food distributors have come out in support of Szabo’s legislation, including: Safeway, King Soopers, 7-Eleven, Valero, the Rocky Mountain Food Industry Association and the Colorado Retail Council.

“We’re glad Rep. Szabo has taken up this worthy cause,” said Chris Howes of the Colorado Retail Council. “Senate Bill 094 safeguards Colorado families and food vendors from over-taxation.”

Szabo’s measure passed unanimously and now moves to the House floor for further consideration.

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