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Lobbyist Money Help  

Food Sales Tax Cut Approved

February 08, 1996
By: Lara Hearnburg
State Capital Bureau

JEFFERSON CITY - The House Ways and Means Committee yesterday gave approval to a proposal that would reduce sales tax on food groceries.

The bill that was approved by the committee began as a one-fourth reduction on all sales tax that was proposed by Rep. Ken Jacob, D-Columbia. The final proposal, which was passed unanimously by the committee, would reduce the tax on groceries by one and three-fourth's of a cent.

"It's real easy," said Jacob, the committee chair. "For every dollar they (consumers) spend, they save one and three-fourths of a cent. In aggregate, Missourians can expect to spend $150 million dollars less per year on groceries."

Jacob said Missouri expects a $150 million excess in revenue, and instead of giving income tax refunds to citizens, this bill allows people to save money now on their groceries. The proposal would permanently reduce the sales tax on food items.

Despite the nature of the two party system that could create some problems for those who want to see the bill passed on the House floor, said Jacob, he is optimistic about the bill's passage.

"Both parties realized at the same time that this needed to be done," said Jacob. Thus, he anticipates "overwhelming support on the House floor for this bill."