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House unanimously approves food tax cut

JEFFERSON CITY - The Missouri House voted unanimously to save grocery shoppers money statewide.

The House unanimously passed a bill that would reduce grocery sales tax by three percent, bringing it down to 1.225 percent.

That would result in an approximate savings for each family of the cost of a week's worth of groceries per year, said Rep. Vicky Riback Wilson, D-Columbia.

Lawmakers are not cutting the remaining sales tax because it was passed by voters, not by the government.

The measure, part of the governor's legislative package, now goes to the Senate.

It was the second time this month the House has approved the sales-tax cut on groceries -- both times unanimously. Legislative rules require two separate votes for a House bill to proceed to the Senate.

"The need for food is something that cuts across all lines," Wilson said.

She said lawmakers are working to keep state revenue below the level set by the Hancock amendment, which the state currently exceeds.

Rep. Rich Chrismer, R-St. Peters, said the cut would be the largest tax relief plan in Missouri history.

"It is rare in state law that, making history, a piece of legislation will favorably and directly impact every single citizen in the state of Missouri," Chrismer said.

The bill includes a provision to help grocers cover the costs of implementing the new tax rate in their stores. For a limited time, they would receive a three percent refund of all grocery tax collected.

Missouri Chamber of Commerce representatives have lobbied against the tax break, citing concerns about a secure tax base if the economy should hit a low point.

"We feel like we're jeapordizing the tax base," Mehan said.

He said there are other viable options for reaching the Hancock limit, such as a tax credit for low income people that could be used for things such as housing or food.

"It's very ironic that the Missouri Chamber of Commerce is against a tax cut," said lobbyist Dan Mehan. "We applaud them for reducing revenues. This just isn't the way to do it."

Mehan said he foresees substantial changes in the bill when it goes through the Senate. Last year, a similar food tax cut passed in the House but was defeated in the Senate on the last day of session.

Wilson said the only lobbying she received against the tax cut was from certified public accountants.