Three states — Alabama, Mississippi & South Dakota — considered by a recent report as the Top 3 most culturally conservative in America, are the final holdouts when it comes to offering any relief on the sales tax rate on groceries.
, and conservative groups like API argue that rebates don’t go far enough and are angling for more permanent tax cuts.
Wieland said Noem’s backing of the grocery tax cut in South Dakota is keeping the issue alive, despite the Legislature’s decision last month not to press forward with it. A revenue loss from cutting the grocery tax – which amounts to around $300 million a year – is considered a large hit to Mississippi’s education budget, according to Christopher Newman, associate professor of marketing and the marketing doctoral program director at the University of Mississippi.
Mississippi Gov. Tate Reeves speaks at a bill signing in the Governor's Mansion garden in Jackson, Miss., Tuesday, April 19, 2022. “Governor Tate has not been a strong vocal supporter of reducing or eliminating the grocery tax to this point,” said Newman. “His focus has primarily been on the full elimination of the state income tax.”
“Personally, I believe that a partial elimination of the grocery tax would be the best approach for Mississippi,” Newman said. “Specifically, lowering taxes on healthier food, but maintaining higher taxes on junk food, would help curb its pervasive obesity problem while still providing some revenue streams for public services.”A total of 12 states – including Alabama, Mississippi, and South Dakota – have some sort of sales tax on groceries on the books.
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