Indiana Legislature May Exempt Vending Machine Food From Sales Tax

March 7, 2018

Editor's note: This is a corrected version with the updated effective date of January 1, 2020

Indiana Senate Bill 124 has been filed to eliminate sales tax from food in vending machines. Most recently, the House on Monday voted 93-0 for the Bill to pass. It was then returned to the Senate, who filed a motion a motion to concur. The House is waiting for a final decision from the Senate on whether to send it to Gov. Eric Holcolmb for enactment. If passed, the law for sales tax paritywould take effect January 1, 2020 (a push back of the original July 1, 2019 after it was amended in the House Ways and Means committee). The law states that food in vending machines is exempt from the seven percent sales tax. The sales tax exemption only applies to food products, and so does not apply to candy, soft drinks, and other items not classified as "food" under Indiana law.