State lawmakers have voted to eliminate the state’s grocery tax. House Bill 1685 will eliminate the 0.125% tax. It is backed by Governor Sanders and once it is signed, will go into effect on January 1, 2026. The Governor’s office says it will return $10.9 million dollars to the Arkansas taxpayers each year. The bill, which will establish the Grocery Tax Relief Act, will not change city or county grocery taxes. It will also expand liability protections to food banks and food bank donors, including retail grocers, wholesalers, hotels, motels, restaurants, caterers, farmers, non profit food distributors, schools, churches, religious organizations and hospitials.
