Arkansas lawmakers are introducing two new legislative measures to advance efforts to eliminate the state’s grocery tax and bolster food donation protections.
On Tuesday, Governor Sarah Huckabee Sanders announced the Grocery Tax Relief Act and the Good Neighbor Act, which are aimed at easing financial burdens on families and addressing food insecurity across the state.
“The Grocery Tax Relief Act ends our state’s most regressive tax, the state grocery tax, and eases the burden on families just trying to put food on their tables,” Sanders said. “We’ve seen how often food goes to waste instead of helping a family in need. The Good Neighbor Act opens the door for more organizations to donate leftover food and ensures generous Arkansans don’t have to worry about lawsuits.”
The Grocery Tax Relief Act would repeal the state-imposed tax on food ingredients, returning an estimated $10.9 million to taxpayers annually. However, the measure would not affect county and municipal grocery taxes.
The legislation is being led by Senate President Bart Hester (R-District 33) and Representative Kendon Underwood (R-District 16).
“Working families deserve every break we can help provide, especially at the grocery store. I am proud to do my part in helping deliver relief by letting them keep more of their hard-earned money,” Hester said.
Meanwhile, the Good Neighbor Act seeks to expand liability protections for food donors, including retail grocers, wholesalers, hotels, motels, restaurants, caterers, farmers, nonprofit food distributors, schools, churches, religious organizations, and hospitals. The bill also extends protections to food banks that distribute donated food to those in need.
Senator Breanne Davis (R-District 25) and Representative Chad Puryear (R-District 25) are leading the legislation.
“With so many hungry people across our state, good food should not be going to waste. I’m proud to work with Governor Sanders to ensure good food goes to those who need it most,” Davis said.
Both measures will now advance through the state legislature for consideration.
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