The grocery tax is the most regressive tax in the State and disproportionately affects lower-income families when they buy the necessities of life, like bread and milk.
How much is the grocery tax currently? How much will Governor Beebe's proposal cut the grocery tax?
Currently, all essential food items are being taxed at six percent. This includes items like bread and milk. Governor Beebe's proposal would cut the grocery tax rate in half, form six percent to three percent.
How much will this help with my grocery bill?
It depends on how much you spend a month on groceries. For example, if you spend $120 a week on groceries, you will save around $200 a year.
Who does this tax cut help the most?
The grocery tax is the most regressive tax in the State and disproportionately affects low-income families. Therefore, reducing the grocery tax will ease the tax burden of Arkansas working families, especially those from low-income and middle-class tax brackets.
What is the current status of the Grocery Tax Bill?
Senate Bill 185 (the Grocery Tax) passed the Senate Committee on Revenue and Taxation unopposed and recently passed the full Senate unanimously. It is currently headed to the House Committee on Revenue and Taxation.
Can Arkansas afford the tax-revenue loss from a cut in the grocery tax?
Yes, Governor Beebe has accounted for this cost in the budget he recently proposed. The Governor's grocery-tax cut will cost $121 million in the first year and $131 million in the second year to begin the phase-out of the food tax. This will allow immediate reduction in the state sales tax on food by half, from six percent to three percent.
What Senators support Governor Beebe's proposal to phase out the grocery tax?
Asterisk (*) Indicates co-sponsors
Senators |
City, County |
Bobby Glover* |
Carlisle, Lonoke |
Jim Hill * |
Nashville, Howard |
John Paul Capps* |
Searcy, White County |
Paul Miller* |
Melbourne, Izard |
Terry Smith* |
Hot Springs, Garland |
Steve Faris* |
Malvern, Hot Spring |
Denny Altes* |
Fort Smith, Sebastian |
Jim Argue |
Little Rock, Pulaski |
Ed Wilkinson* |
Greenwood, Sebastian |
Gilbert Baker* |
Conway, Faulkner |
Dave Bisbee* |
Rogers, Benton |
Paul Bookout* |
Jonesboro, Craighead |
Shane Broadway* |
Bryant, Saline |
Irma Hunter Brown* |
Little Rock, Pulaski |
Steve Bryles* |
Blytheville, Mississippi |
Jack Critcher |
Batesville, Independence |
Jack Crumbly* |
Widener, St. Francis |
Kim Hendren* |
Gravette, Benton |
Barbara Horn* |
Foreman, Little River |
Gene Jeffress* |
Louann, Ouachita |
Jimmy Jeffress* |
Crossett, Ashley |
Bob Johnson* |
Bigelow, Perry |
Randy Laverty* |
Jasper, Newton |
Jim Luker* |
Wynne, Cross |
Sue Madison* |
Fayetteville, Washington |
Percy Malone* |
Arkadelphia, Clark |
Paul Miller |
Melbourne, Izard |
Bill Pritchard* |
Elkins, Washington |
Mary Anne Salmon* |
North Little Rock, Pulaski |
Tracy Steele |
Little Rock, Pulaski |
Jerry Taylor* |
Pine Bluff, Jefferson |
Robert Thompson |
Paragould, Greene |
Ruth Whitaker* |
Cedarville, Crawford |
Hank Wilkins* |
Pine Bluff, Jefferson |
Shawn Womack* |
Mountain Home, Baxter |
What Representatives have co-sponsored Governor Beebe's proposal to phase out the grocery tax?
Representatives |
Bill Abernathy |
Pam Adcock |
Keven Anderson |
Tommy Lee Baker |
Stan Berry |
Nancy Duffy Blount |
Will Bond |
Toni Bradford |
Steven Breedlove |
Earnest Brown |
Jerry Brown |
Aaron Burkes |
Mike Burris |
Joan Cash |
Linda Chesterfield |
David Cook |
Eddie Cooper |
Lamont Cornwell |
Larry Cowling |
Dawn Creekmore |
Monty Davenport |
Otis Davis |
Tommy Dickinson |
Sharon Dobbins |
David Dunn |
Marilyn Edwards |
David Evans |
Lenville Evans |
Curren Everett |
Stephanie Flowers |
Ed Garner |
Billy Gaskill |
Nathan George |
Frank Glidewell |
Rick Green |
Dan Greenburg |
Clark Hall |
Horace Hardwick |
Willie Hardy |
Steve Harrelson |
Eric Harris |
Eddie Hawkins |
Jim House |
Johnny Hoyt |
Donna Hutchinson |
Barry Hyde |
Robert Jeffrey |
David Johnson |
Janet Johnson |
Mike Kenney |
Johnny Key |
Ray Kidd |
Bryan King |
Michael Lamoureux |
Wilhelmina Lewellen |
Buddy Lovell |
John Lowery |
Bruce Maloch |
Mark Martin |
Alan Maxwell |
Robert Moore |
James Norton |
George Overbey |
Daryl Pace |
Mike Patterson |
Benny Petrus |
Beverly Pyle |
Roy Ragland |
J.R. Rogers |
Sid Rosenbaum |
Bill Sample |
Susan Schulte |
Randy Stewart |
Scott Sullivan |
Denny Sumpter |
Chris Thyer |
John Paul Wells |
Robbie Wills |
Jeff Wood |
Jon Woods |
David Wyatt |
What is the press saying about the plan to phase out the grocery tax?
"Elimination of the grocery tax would help everybody, especially those folks in the middle class and lower-middle class. In Arkansas, about half-a-million households earn between $25,000 and $75,000 a year, which is our definition of middle class. And those folks could stand some help. Or just a little justice. Instead of being taken for 6 percent every time they go to the grocery store." - Editorial, Arkansas Democrat Gazette, Why Not Both? A tax-relief two-fer for all Arkies, (1/17/07)
"There won't be a more opportune time to finally rid Arkansas of the state grocery tax. For a change, the Legislature could do something the people want that really does help them instead of adding taxes or creating breaks only for some." - Editorial, The Baxter Bulletin, It's Time to Drop the Grocery Tax (1/3/07)