Exempts the retail sale of food from state sales and use tax and phases out local sales and use tax on the retail sale of food over four years

HB 345 exempts the retail sale of qualifying food from state sales tax starting August 2025 and phases out local sales tax on food over four years. Beginning January 1, 2026, local food tax rates will decrease annually in equal steps until fully eliminated by January 1, 2030. The bill defines "food" narrowly to include only items eligible for SNAP benefits (like groceries), excluding most restaurants and eateries where over 80% of revenue comes from prepared food sold for immediate consumption. This directly affects grocery retailers and convenience stores selling qualifying food, while restaurants and similar establishments remain subject to both state and local food taxes.