Knowledge Is Power: Arkansas Grocery Tax

The sales tax on groceries (food and food ingredients) has been a shifting policy debate for several years in Arkansas. Attempts to end or reduce the state sales tax on groceries failed throughout the 90s in Arkansas. Then, in 2007 under the leadership of Democrat Governor Mike Beebe, the Arkansas Legislature approved the phasing down of the grocery tax in Arkansas from the full state sales tax rate to a final rate of 0.125% beginning in 2019.

Currently, the tax task force initiated by Gov. Asa Hutchinson and chaired by his nephew Sen. Jim Hendren is considering raising the tax on groceries and stopping the phase down that is triggered to begin next year.

This quiz will highlight the changes in the grocery tax, current rates, how this compares to other states, and the financial impact a grocery tax increase would have on Arkansans.


Question Sources:

Sales Tax By State: Are Grocery Items Taxable?–Sales%20Tax%20Exemptions%20FY2017.pdf