Beebe's Grocery Tax Proposal -- Draft is circulating (Updated)

A draft is circulating to implement Beebe's proposal to cut the sales tax on groceries in half. This was one of my own personal legislative plans coming into this session to deal with the current $843 million revenue surplus, and I committed on Beebe's proposal during his campaign.

However, Speaker Petrus has devised another plan that would target relief specific to income tax. All he has asked is that we have a spirited debate on this issue.

For me locally, the repeal of the grocery tax presents an issue that can help residents and grocery businesses in outlying areas of southwest Arkansas, since Texas does not have a sales tax on groceries. I'm inclined to support this repeal on the "grocery tax."

I simply want to make sure that the remaining portions of my personal legislative plan can also become reality:

1. Implement a "Rainy Day Fund" of $150-$200 MM (bill already filed by Rep. Maloch);
2. Set aside $250-$300 MM for one-time expenses related to school facilities;
3. Provide tax relief to consumers in the form of a broad tax package (sales tax or income tax); and
4. Provide tax relief to businesses in the form of a repeal of sales tax on energy costs for manufacturers (and to implement biofuel incentives to jumpstart efforts in the delta and the rest of southern Arkansas).

We have plenty of time to debate this tax relief issue before a vote on either a repeal on the "grocery tax" versus a more targeted tax relief program, but we may find out pretty quickly where the votes are.

Updated:After visiting with my constituency and local leaders, I'm committed to the repeal of sales tax on groceries (in half) and am alerting the Speaker tonight. However, I think it's important (and good policy) to not be in such a rush to usher through this legislation right now. The Speaker is entitled to the debate he requested, and we can get a clearer picture of the budget and opportunity to see how the budget shakes out.