Tennessee, Mississippi, and other states may drop sales tax on groceries

by Jonathan M. Forester, Posted Jan 31st 2007 @ 8:04PM

I never knew that fifteen states still charge tax on groceries. No wonder the piggy banks of Americans are getting so skinny. Here in NY there has been no tax on most groceries as far back as I can remember. Well it looks like that is finally starting to change. Tennessee, Mississippi and a few other states want to drop the grocery sales tax after three other states did so last year.

Some states say they can't drop the tax at this time but are looking at other options. Wyoming recently put a temporary 2-year hold on its grocery tax in 2006 after the state experienced a $1 billion budget surplus. Their lawmakers are now considering making this permanent.

Idaho Governor Otter said that his state cannot afford to do away with the 5 percent food sales tax, (which brings the state $180 million in revenue each year) but he plans to introduce a program to allow low-income families to deduct $90 from their state income taxes as compensation. that's not a fortune, but it still helps. Working on the situation are Utah and South Carolina which lowered their food sales taxes to one point less than the state taxes on other items.

Now it's time for the rest of the states to jump on board and start dropping the grocery sales tax. That way Americans can try to make their poor, skinny, piggy banks plump up a bit.

Source

Filed Under: Business, Stores & Shopping
Tags: america, grocery tax, GroceryTax, idaho, mississippi, south carolina, stores-and-shopping, texas, utah, wyoming

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Reader comments (Page 1 of 1)

1-31-2007 @10:13PM Lightning said... It's about time! I live in TN and spend $200 a week on groceries--do the math, that's $20 a week in tax or $1,000 a year!!!
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1-31-2007 @10:23PM Dr Electro said... I have never paid sales tax on groceries in Texas. Okay, I confess: I'm old enough to remember when Texas didn't even charge sales tax on anything.

Damn politicians always screwing up a good thing! Hang 'em all.
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2-01-2007 @1:06AM thefishie said... It's being discussed here, we have a new Governor and it was one of the things he pushed for heavily. I think we'll see it phased out here in Arkansas.
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2-01-2007 @8:04AM Mike said... Grocery sales taxes are the least of people's worries. We get taxed to death on a million other things. I used to live in Fairfax County VA, they a state income tax, state sales tax, county sales tax and property taxes on not only homes but cars as well. Also even if they kill that tax, they still might tax prepared food items, like TV Dinners, etc etc
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2-01-2007 @12:43PM Baron said... I live in MS and I have been hearing about this on the radio for quite some time now. They are always trying to get rid of it, but it always gets voted down because people like to try and piggy back other things on it, etc. I think the tax on most consumables here is around 3%, so, not a huge help, but like someone said, every bit helps. Anyway, no need to get into the details as there are really so many pros and cons to both sides, but in the end, the lost revenue will be made up one way or another (higher tabacco tax is what most people want, but others are talking increased property taxes, etc. )...
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2-01-2007 @4:23PM tr said... wait, other states tax groceries? i guess i've been spoiled all this time. in ohio, i don't think we've ever had tax on groceries or food, at least as far as i can remember.
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2-01-2007 @4:22PM tr said... wait, other states tax groceries? i guess i've been spoiled all this time. in ohio, i don't think we've ever had tax on groceries or food, at least as far as i can remember.
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