HB 22-1062

House Bill 22-1062, which has been signed into law, expands the sales tax exemption for food in Colorado. Currently, most food intended for home consumption is exempt from state sales and use taxes. The new law extends this exemption to include prepared foods that are eaten on-site at restaurants or grocery stores, as well as takeout meals that don’t require further cooking or preparation. This means more types of food will be tax-free, benefiting both consumers and businesses in the food service industry. Since it has been signed, the bill is now law and its provisions should start taking effect according to the implementation details provided by the legislation.

Official Summary

The bill expands the state sales and use tax exemption for food, which currently exempts most food for domestic home consumption, by also exempting from state sales and use tax most food that is not for domestic home consumption and is instead prepared for on-site consumption at a restaurant, grocery store, or other establishment or to be carried out and consumed without additional cooking or preparation.(Note: This summary applies to this bill as introduced.)

Related Legislation