Kentucky State Representative Looks To Exempt Vending Food From Sales Tax

Jan. 24, 2013

State Rep. Steve Riggs (D) has brought forward an act that would exempt the taxation of food sold through vending machines. HB (62) would amend the previous legislation, KRS 139.485, which supported the taxation of vending machine food.

The bill comes as Kentucky vending operators face declines in sales and profit margins. Due to the economic downturn and shrinking profits, Riggs believes the vending industry should be exempt of the six percent Kentucky sales tax

The legislation, currently being reviewed by the Kentucky House Appropriations and Revenue Committee, would exempt anything dealing with “food and food ingredients” meaning any substances, whether liquid, concentrated, frozen, solid, dried or dehydrated that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. “Food and food ingredients” would not include alcohol, tobacco, candy, dietary supplements, soft drinks and prepared food. The legislation would also not apply to food sold through non-mechanical self-service vending systems.

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