Senate Passes Bookout's Bill to Eliminate Grocery Tax

FEBRUARY 17, 2005 - Posted at 1:08 p.m. CST

LITTLE ROCK, AR - Legislation that would eliminate Arkansas' sales tax on groceries if the federal government eventually approves a tax in Internet sales passed the Arkansas Senate today.

The bill by Senator Jerry Bookout, a Jonesboro Democrat, would only apply if the collections from the Internet tax were at least 150 percent of the grocery tax revenue for a six-month period.  The legislation is limited to state and would not apply to local or municipal sales taxes on groceries.

The measure next goes to the House.

(Copyright 2005 by The Associated Press.  All Rights Reserved.)