Lawmakers vote to eliminate state grocery tax

Arkansas lawmakers have taken a decisive step to ease the financial strain on residents by passing House Bill 1685, which proposes the elimination of the state’s 0. 125% grocery tax. This initiative, championed by Governor Sarah Huckabee Sanders, is projected to save taxpayers approximately $10. 9 million annually. While the bill aims to provide relief at the state level, it does not alter any existing city or county grocery taxes, maintaining local tax structures.

Moreover, the legislation seeks to bolster food security by expanding liability protections for food banks and their donors, which include a wide range of contributors such as restaurants, wholesalers, and even religious organizations. This comprehensive approach not only addresses the immediate concerns of rising grocery costs but also supports the infrastructure needed to combat food insecurity. The bill is now set to be signed by the governor, with an effective date of January 1, 2026, if enacted. Such legislative measures reflect a growing recognition of the need for economic relief amid rising living costs. The passage of this bill underscores a commitment to supporting both individual taxpayers and community resources.