Governor Sanders Unveils Plan to Cut Grocery Taxes and Lower Food Costs for Arkansas Families

LITTLE ROCK, Ark. — Governor Sanders is pushing for a new law to cut the grocery tax in Arkansas.

She pointed out that many families are struggling. Grocery prices are rising, but their paychecks aren’t growing. This can lead to missed meals and families going hungry.

The proposed ‘Grocery Tax Relief Act’ aims to remove the state’s 0.125% tax on food. If it passes, it could save Arkansas families about $10.9 million each year. However, it won’t impact local grocery taxes, which will still apply.

State Representative Kendon Underwood, who is helping with this legislation, said it’s a step to support those facing high food prices. He acknowledged that while the bill won’t solve every problem, it shows that lawmakers understand the struggles of their constituents.

Reducing grocery taxes has been a goal in Arkansas for a long time. This particular tax was originally part of Amendment 75, meant to fund state conservation efforts. Now, after years of cuts, Governor Sanders believes it’s time to remove the last bit of it.

Steve Edwards, a project manager at Edwards Food Giant, remarked that customers often discuss grocery prices. Even small savings can make a difference for those on tight budgets. He hopes this action encourages local governments to consider their own grocery taxes.

Food insecurity is a significant issue in Arkansas. A recent report from the U.S. Department of Agriculture revealed that 18.9% of Arkansans faced food insecurity over three years, making the state the highest in the nation.

Senator Bart Hester emphasized that every cent counts for shoppers at the grocery store. He understands how crucial these savings can be for families.

Governor Sanders also expressed that rising food prices are partly due to federal policies. Ending the grocery tax is her way of helping families put food on the table.

Local grocery taxes will still exist, so shoppers will continue to pay those. If anyone wants changes to local taxes, they should speak to their city or county officials.

Governor Sanders reassured that the agencies benefiting from the grocery tax have good budgets, so the state’s financial health won’t be at risk.

If the legislation gets approved, it is set to start on January 1, 2026.