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REFERENCE TITLE: sales tax; candy; soft drinks |
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State of Arizona Senate Forty-ninth Legislature Second Regular Session 2010
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SB 1252 |
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Introduced by Senator Aboud
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AN ACT
amending section 42-5106, Arizona Revised Statutes; amending title 42, chapter 5, article 3, Arizona Revised Statutes, by adding section 42-5107; relating to transaction privilege tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-5106, Arizona Revised Statutes, is amended to read:
42-5106. Rules
A. The department shall adopt rules defining food consistent with section 42‑5101 and this section.
B. The department shall include as food:
1. Returnable containers for which a deposit is collected.
2. Ice and dry ice used in packing, shipping or transporting food.
3. Seeds and plants to grow food for personal consumption.
C. The department shall not include food for consumption on the premises, alcoholic beverages, or tobacco or candy or soft drinks, as provided by section 42-5107, as food.
D. The department shall adopt rules which that, other than for those items specifically included or excluded by subsections B and C of this section, define food to be those items which that are intended for human consumption and which that are intended for home consumption. In adopting such rules, the department shall give strong consideration to those specific items which that are then eligible for purchase with food coupons issued by the United States department of agriculture so as to effectuate the intent of the legislature as specified in this article.
Sec. 2. Title 42, chapter 5, article 3, Arizona Revised Statutes, is amended by adding section 42-5107, to read:
42-5107. Candy and soft drinks; definitions
A. In adopting its rules defining food pursuant to section 42-5106, the department shall not include as food:
1. Confectionary candy that does not contain flour or that requires refrigeration.
2. Soft drinks, soft drink syrup, simple syrup and powders or other base products used to produce a liquid soft drink.
3. Drinks that are intended or marketed by the manufacturer to enhance bodily energy or performance.
B. Subsection A of this section does not apply to, and the following are not considered to be soft drinks for the purposes of this section:
1. Any powder or other base product that is used in preparing coffee or tea.
2. Any drink that contains more than fifty per cent natural fruit juice or natural vegetable juice.
3. Any frozen concentrate or freeze-dried concentrate to which only water is added to produce a drink that contains more than fifty per cent natural fruit juice or natural vegetable juice.
4. Any infant formula that is sold in liquid or powder form and that is intended by the manufacturer to be consumed by infants.
5. Any liquid or powder product that is intended by the manufacturer to be used for weight reduction.
6. Water that has no added natural or artificial sweeteners.
7. Any product that contains milk or milk products. For the purposes of this paragraph, "milk" means natural liquid milk from any animal source, soy milk, natural milk concentrate that is from any animal source and that may be reconstituted or dehydrated natural milk that may be reconstituted.
C. For the purposes of this section:
1. "Natural fruit juice" means the liquid that results from the pressing of fruit, the reconstitution of natural fruit juice concentrate or the restoration of water to dehydrated natural fruit juice.
2. "Natural vegetable juice" means the liquid that results from the pressing of vegetables, the reconstitution of natural vegetable juice concentrate or the restoration of water to dehydrated natural vegetable juice.
3. "Powder or other base product" means a solid mixture of basic ingredients that is used in making, mixing or compounding soft drinks by mixing powder or other base product with water, ice, syrup, simple syrup, fruits, vegetables, fruit juice, vegetable juice or other product to make a complete soft drink.
4. "Simple syrup" means a mixture of sugar and water.
5. "Soft drink" means any nonalcoholic sweetened beverage that is sold for human consumption. Soft drink includes sweetened soda water, ginger ale, fruit or vegetable drinks that contain fifty per cent or less natural fruit or natural vegetable juice and other drinks and beverages that are commonly referred to as cola, soda, soda pop or soft drink.
6. "Syrup" means the liquid mixture of basic ingredients that are used in making, mixing or compounding soft drinks by mixing the syrup with water, simple syrup, ice, fruits, vegetables, fruit juice or other product to make a complete soft drink.
Sec. 3. Requirements for enactment; two-thirds vote
Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.