House approves conditional cut in Ark. grocery tax

LITTLE ROCK (AP) - The Arkansas House has approved legislation that would cut the state's sales tax on groceries if bond obligations or desegregation payments decline over a six-month period.

House members sent the bill to the Arkansas Senate on a 90-2 vote Tuesday. A Senate committee is considering an identical proposal.

As part of a budget plan presented last year, Gov. Mike Beebe suggested reducing the grocery tax from 1.5% to 0.125%, but only if the state's bond obligations or school desegregation payments drop by $35 million over six months.

The bill was approved after the Republican-controlled House approved proposals to cut the state's taxes on income, capital gains and manufacturers' utility bills. Beebe, a Democrat, has successfully pushed for cutting the tax from 6% since taking office in 2007.

Beebe Proposes Trigger to End Grocery Tax (Jan. 15)
Ark. lawmakers: No rush on tax cut proposals (Jan. 20)
Arkansas House speaker backs $150M in tax cuts (Feb. 26)
Ark. panel approves tax cut for farm structures (March 14)
Tax exemption for farmers passes Arkansas House (March 18)
Ark. leaders say they're closer to tax cut deal (March 20)
Ark. House panel advances income tax cut bill (March 26)
Beebe: Problem with tax cuts' effective dates (March 27)
Income Tax cuts in Arkansas (April 2)
Ark. House panel OKs tax cut for manufacturers (April 2)
Ark. House speaker amends capital gains tax bill (April 4)
House approves conditional cut in Ark. grocery tax (April 16)
Arkansas House approves package of tax cut bills (April 16)

Ark. Senate committee advances tax cut bills (April 18)
Ark. Senate approves $140M tax cut package (April 19)