Senate Shows Backing for Beebe's Proposed Sales Tax Cut

JANUARY 25, 2007 - Posted at 7:47 a.m. CST

LITTLE ROCK (AP) - Thirty of the Arkansas Senate's 35 members have signed on as co-sponsors of a bill that would bring about Governor Beebe's proposed 50 percent reduction in the state's sales tax on groceries.

But the bill may run into some resistance in the House, where 42 of its 100 members are sponsoring the bill.

House Speaker Benny Petrus, a Stuttgart Democrat, prefers other forms of tax relief. Petrus says he is working on three alternate bills, including an $80 million annual tax rebate for low- and middle-income Arkansans.

Beebe told reporters yesterday that he believes the sales tax cut would provide a greater benefit to poor and middle-income families.

(Copyright 2007 by The Associated Press.  All Rights Reserved.)