Beebe proposes reduction in grocery tax
By ANDREW DeMILLOAssociated Press
LITTLE ROCK (AP) - Gov. Mike Beebe is proposing a reduction in the state's grocery tax that would be triggered if the state's budget obligations in several key areas decline over a six-month period.
Finance officials on Thursday said Beebe is calling for reducing the state's grocery tax from 1.5 percent to 1/8th percent. The cut would eliminate all but a portion of the sales tax that was approved by voters as part of a constitutional amendment.
The tax cut would be triggered if deductions in several key areas decline by at least $35 million for six consecutive months. The deductions include the state's desegregation obligations and payments for certain bonds.
The tax cut was part of a $4.9 billion general revenue budget proposal for next year that Beebe's administration detailed to lawmakers.Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.