Arkansas – Governor Sarah Huckabee Sanders announced the Grocery Tax Relief Act and the Good Neighbor Act, two legislative efforts aimed at reducing financial burdens on Arkansas families and encouraging food donations.
The Grocery Tax Relief Act seeks to repeal the state grocery tax, a measure sponsored by Senate President Bart Hester and Representative Kendon Underwood. The Good Neighbor Act, sponsored by Senator Breanne Davis and Representative Chad Puryear, expands liability protections for food donors and food banks to encourage more contributions to those in need.
Governor Sanders emphasized the impact of rising food prices on Arkansas families, attributing the increase to federal economic policies. She stated that eliminating the grocery tax would provide relief to households struggling with high costs. Additionally, she highlighted the importance of reducing food waste by ensuring that donors are protected from legal concerns when contributing surplus food.
Senate President Hester supported the tax repeal, noting that working families deserve financial relief. Senator Davis underscored the need to redirect unused food to those experiencing hunger, while Representative Underwood praised the governor’s efforts to lower taxes on income, property, and groceries. Representative Puryear emphasized that liability concerns should not discourage food donations and expressed appreciation for the administration’s focus on addressing food insecurity.
If enacted, the Grocery Tax Relief Act will eliminate the state grocery tax on food ingredients, returning approximately $10.9 million to taxpayers annually. The legislation does not affect local grocery taxes imposed by counties or municipalities.
The Good Neighbor Act extends liability protections to a range of food donors, including grocery stores, wholesalers, restaurants, caterers, farmers, schools, churches, hospitals, and nonprofit food distributors. It also shields food banks that distribute donated items to the community.