A group of lawmakers are reviewing tax exemptions in the natural state and a possible grocery tax increase could be in the works.
A panel of 8 senators as well as 8 house members from around the state are reviewing tax exemptions to create a tax reform proposal among the initial talks includes a grocery tax increase.
One local farmer who provides food for some local food banks says the tax is a mistake.
“We live in a state where 1 in 4 children are food insecure and we’re going to add a tax for that? We should be talking about no tax on our foods, ” said Don bennet, owner of Tri-cycle Farms in Fayetteville.
Although there are more than a hundred exemptions that are being considered , the percent of tax increase towards groceries or food has not been finalized for a proposal.
Arkansas’ current grocery tax is 1.5%.Numbers as high as 6% have been rumored to be part of the new proposal.
“Im very happy to say that we absolutely are reviewing it along with all other tax exemptions in the state.We will start to talk about proposals in September,” Said State Senator Bart Hester.