House Bill 3761/Senate Bill 3763, passed by the legislature on April 27, provides for a reduction in the state sales and use tax rate on sales of food and food ingredients.Effective July 1, the state sales and use tax rate on sales of food and food ingredients will be reduced from 5.5 percent to 5.25 percent. With the change, food and food ingredients will be subject to a reduced state sales and use tax rate of 5.25 percent plus the applicable local sales and use tax rate.Prepared food, dietary supplements, candy, alcoholic beverages and tobacco continue to be subject to the general state sales and use tax rate of 7 percent plus the applicable local sales and use tax rate. Existing laws defining which items are considered food and food ingredients remain unchanged by the new legislation.