2023 House Bill 4377 / Public Act 141

House Fiscal Agency Analysis

House Bills 4377 and 4378 would amend the Use Tax Act and the General Sales Tax Act, respectively, to add definitions of the terms “food sold with eating utensils provided by the seller” and “food sold in an unheated state by weight or volume as a single item” as they relate to the definition of “prepared food” and the exemption of the sale or purchase of food or food ingredients. Currently, each act exempts the sale or purchase of food or food ingredients from the sales and use tax, except for prepared food intended for immediate consumption. The acts specifically include food sold with eating utensils provided by the seller in the definition of prepared food and further specify that eating utensils include knives, forks, spoons, glasses, cups, napkins, straws, or plates, but do not include a container or packaging to transport the food. The bills would add that the applicable utensils are not limited to those specified in statute and would add a definition of food sold with eating utensils provided by the seller.