In order to encourage economic activity in the state, regulations have been adopted which provide for a two-year sales and use tax exemption on food for domestic home consumption, effective July 1, 2006, through June 30, 2008. The Department of Revenue has adopted rules defining “food for domestic home consumption” as substances, whether liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are sold for their taste or nutritional value. Alcoholic beverages, tobacco, prepared foods or food sold through vending machines are not part of the definition. Additional rules and regulations do apply. For an update on this news item, click here. (Ch. 35, H.B. 1, Laws 2006)