Beebe to Sign Grocery Tax Cut Bill Tomorrow

FEBRUARY 14, 2007 - Posted at 7:37 a.m. CST

LITTLE ROCK (AP) - Governor Beebe is to hold a signing ceremony tomorrow for a bill that will cut the sales tax on groceries in half.

The Senate gave the Legislature's final approval yesterday to Arkansas' largest tax cut ever -- slashing the sales tax on groceries from 6 percent to 3 percent.

Beebe spokesman Matt DeCample says the governor will sign the bill at a ceremony that will include former state Senator Eugene ``Bud'' Canada of Hot Springs. In his time in the Senate, Canada fought unsuccessfully to get the tax on food purchases removed.

The tax cut will reduce Arkansas revenues by $252 million dollars over the next two years. Beebe made the cut a centerpiece his 2006 campaign for governor.

Senators voted 35-to-0 yesterday to concur in a minor amendment from the House, which approved the tax cut 99-to-0 last week.

Once signed by Beebe, the bill will take effect July 1.

The Arkansas Policy Foundation says the typical Arkansas family would save $234 per year on grocery bills.

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