reduce the sales and use tax rates on food, to increase the rates for certain taxes, use taxes, and excise taxes, and to provide a new fund for school district capital outlay projects.

HB 1281 reduces sales and use tax rates on non-prepared food (like groceries) for consumers while increasing tax rates on other items, including certain excise taxes and use taxes. The bill establishes a new fund specifically for school district capital projects, such as building construction or major equipment purchases. It defines "food" to exclude prepared meals (e.g., restaurant takeout), alcohol, tobacco, and candy, ensuring the tax cut applies only to basic grocery items. The policy shifts tax burden from grocery shoppers to other taxable goods and services to finance school infrastructure.