Gov. Sarah Sanders announced the filing of the Grocery Tax Relief Act, which would repeal the remaining 1/8th-cent sales tax on groceries in Arkansas. The bill, sponsored by Sen. Bart Hester and Rep. Kendon Underwood, would reduce state tax collections by $10.9 million and go into effect on January 1, 2026. The tax, originally enacted in 1996, currently supports various state agencies, including the Arkansas Game and Fish Commission and the Department of Parks, Heritage, and Tourism.
In addition to repealing the grocery tax, Sanders also introduced the Good Neighbor Act, which aims to expand liability protections for food donors and food banks. The bill, sponsored by Sen. Breanne Davis and Rep. Chad Puryear, would benefit a wide range of entities, including retail grocers, farmers, and nonprofit food distributors.
Sanders emphasized the importance of helping Arkansans in need and breaking cycles of poverty and dependency. She highlighted instances where food banks have struggled to accept certain donated products and expressed the need to make it easier for citizens to help one another.
While some agencies may see a loss in revenue, such as the Division of Arkansas Heritage, Sanders is confident that the state’s budget can absorb these changes. With tourism numbers on the rise, she remains optimistic about the state’s economic outlook.
Overall, the introduction of these bills represents a move towards commonsense conservatism in Arkansas, with a focus on supporting those in need and fostering a sense of community amongst residents.
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