Arkansas Gov. Sarah Huckabee Sanders announced two changes impacting Arkansans at a news conference on Tuesday.
The governor announced legislation to create the Grocery Tax Relief Act and the Good Neighbor Act. The Grocery Tax Relief Act ends the grocery sales tax, while the Good Neighbor Act provides additional protections for food banks and donors.
The Grocery Tax Relief Act repeals the state grocery tax on food ingredients, and officials expect it to return nearly $10.9 million to taxpayers annually. This bill does not impact county and municipal grocery taxes.
The Good Neighbor Act expands liability protections to food bank donors, including retail grocers, wholesalers, hotels, motels, restaurants, caterers, farmers, nonprofit food distributors, schools, churches, religious organizations and hospitals. It also protects food banks that distribute food donations.
Sanders said the two acts fill important needs in the state.
“The Grocery Tax Relief Act ends our state’s most regressive tax, the state Grocery Tax, and eases the burden on families just trying to put food on their tables,” the governor said, adding, “The Good Neighbor Act opens the door for more organizations to donate leftover food and ensures generous Arkansans don’t have to worry about lawsuits.”
