Arkansas Governor Sarah Sanders is advocating for the Grocery Tax Relief Act, a proposal to eliminate the state’s 0.125% tax on groceries. The move could save Arkansas families an estimated $10.9 million annually, though it won’t affect local and county grocery taxes.
Sanders called the tax “the state’s most regressive” and said ending it would help struggling families facing rising food costs. State Rep. Kendon Underwood, co-sponsoring the bill, added that while the legislation may not solve all problems, it shows lawmakers “hear and understand” residents’ challenges.
The tax was initially part of Amendment 75 to fund state conservation efforts, but Sanders says it’s time to remove its final remnants. Edwards Food Giant’s Steve Edwards hopes this step might inspire local governments to reevaluate their own grocery taxes.
With Arkansas leading the nation in food insecurity at 18.9%, Senate President Bart Hester said every bit of savings at the store matters to families. Sanders assured the state’s financial stability, noting the agencies funded by the grocery tax have strong budgets.
