TO CREATE THE GROCERY TAX RELIEF ACT; TO AMEND THE LAW CONCERNING THE SALES AND USE TAXES LEVIED ON FOOD AND FOOD INGREDIENTS, AS AFFIRMED BY REFERRED ACT 19 OF 1958; AND TO EXEMPT GROCERIES FROM STATE SALES AND USE TAXES.

Senate Bill 377, also known as the "Grocery Tax Relief Act," proposes to exempt food and food ingredients from state sales and use taxes in Arkansas. This means consumers would no longer pay the state portion of sales tax on their grocery purchases. However, the bill specifies that sales taxes levied by municipalities and counties on food and food ingredients would continue to apply. This legislative change aims to reduce the tax burden on essential food items for all Arkansans.