Governor Sanders Proposes Arkansas Grocery Tax Elimination

Arkansas Governor Sarah Huckabee Sanders announced the Grocery Tax Relief Act, which aims to eliminate the state's remaining 0.125% sales tax on groceries, potentially saving Arkansan families $10.9 million annually. This legislative move is part of a broader trend among several states, including Tennessee, Mississippi, and Alabama, looking to reduce or eliminate grocery taxes amidst rising food prices. The act is sponsored by Sen. Bart Hester and Rep. Kendon Underwood and is seen as a measure to ease financial burdens on families, especially low-income households. Concurrently, Sanders introduced the Good Neighbor Act to enhance food security by extending liability protections to food donors, including grocery retailers and nonprofits, to encourage food donations. These initiatives reflect a continued effort to address the economic challenges faced by families due to high grocery costs and aim to foster a culture of generosity in Arkansas. The proposals are expected to take effect in January 2026, although they will not impact local county and municipal grocery taxes.