Arkansas Lawmaker Wants To Increase Proposed Cut In Grocery Tax

LITTLE ROCK — A House Republican is mounting a direct challenge to Gov. Mike Beebe’s plan to reduce the state sales tax on groceries by another half-cent.

Rep. Andy Mayberry of Hensley today filed House Bill 1389, which would cut the grocery tax a full penny from 2 cents to 1 cent. Earlier this week, Sen. Larry Teague, D-Nashville, filed Senate Bill 276, which would cut the grocery tax by from 2 cents to 1 1/2 cents.

Teague’s proposal is part of Beebe’s legislative package. Beebe, a Democrat, previously pushed through the Legislature reductions of the tax from 6 cents to 3 cents and then from 3 cents to 2 cents.

Beebe has said his goal is to eventually eliminate the food tax altogether. But he has also said there isn’t enough room in his proposed balanced budget for more than a half-cent food tax reduction this year, or for any other tax cuts.

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