Lawmakers to research possibility of raising AR grocery tax

Lawmakers to research possibility of raising AR grocery tax
(Source: KAIT)

LITTLE ROCK, AR (KAIT/KATV) - Lawmakers are looking for more ways to cut income taxes here in Arkansas.

One legislative task force is studying three different proposals to raise that tax to as much as six percent.

The state's grocery tax is one of several exemptions the Tax Reform and Relief Legislative Task Force is considering.

"They'll ultimately make several recommendations in the fall to the governor," said Scott Hardin, spokesperson for the Department of Finance and Administration.

The Arkansas grocery tax was already six percent just over ten years ago, but lawmakers have worked to slowly eliminate the tax on what many call a necessity.

By next year, the state's grocery tax is set to be just 0.125 percent, that's less than half of what it is now.

Most states that border Arkansas like Missouri, Mississippi, Oklahoma, and Tennessee tax groceries, but only Tennessee taxes groceries at a higher rate than Arkansas.

In order to make a grocery tax increase feasible for lower to average income Arkansans, lawmakers are considering a potential grocery tax credit or rebate for families that make less than $40,000 dollars.

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