Missouri House Votes to Expand Sales Tax Exemptions
JEFFERSON CITY (AP) - Pizza parlors, doughnut stores and other restaurants could get a tax break under legislation passed by the Missouri House.
The bill would grant a sales tax exemption on the electricity used to produce food that is sold to customers at restaurants, bakeries, grocery stores and convenience stores.
The Department of Revenue estimates the proposed tax break could reduce total state revenues by between $4 million and $20 million annually.
Republican House member Craig Redmon, of Canton, says his bill was prompted partly by a recent state Supreme Court ruling that said Schnucks grocery stores could not get tax-free electricity to warm their food under Missouri's existing laws.
The legislation passed the House by a 134-12 vote Thursday. It now goes to the Senate.