MDN.ORG:
Missouri Digital News
MDN.ORG
Mo. Digital News
Missouri Digital News
MDN.ORG:
Mo. Digital News
MDN.ORG:
Missouri Digital News
MDN.ORG:
Missouri Digital News
MDN.ORG
Mo. Digital News
Missouri Digital News
MDN.ORG:
Mo. Digital News
MDN.ORG:
Missouri Digital News
JEFFERSON CITY - Gov. Mel Carnahan's bill to cut the state sales tax on groceries sailed through the House Ways and Means Committee Monday night.
By a vote of 20 to 1 the committee approved the bill with only a slight technical change to the original version.
It is now prepped to be the first bill to go to a full House. The bill is designed to give approximately $230 million in tax relief to Missourians as well as bring state revenues under the constitutional limit established by the Hancock Amendment. The bill will reduce the tax rate to 1.225 percent from its current rate of 4.225 percent.
The only drama during the vote was an attempt by Rep. Mike Gibbons, R-St. Louis County, to change the definition of the word "food" in the bill to include prepared food.
The effort to attach the amendment was made on behalf of Missouri restaurants who claim that all food products should be exempt from taxes, not just grocery store food. The Missouri Restaurant Association argued last week that restaurants would have difficulty competing with the grocery stores that benefit from the bill. Gibbon's amendment was quickly defeated.
"I have great sympathy with restaurants," said the committee's chairman, Rep. Nancy Farmer, D-St. Louis. "Reducing the grocery tax will put $230 million in taxpayers pockets which they'll probably spend in restaurants."
However, the fight may not be over for state restaurants. Gibbons said he may resurrect the issue on the floor.
"Obviously it's a little disappointing when you think you have a good idea and it doesn't make it," Gibbons said. "I think that if we're going to do it we should have a larger version that covers everyone. I am considering bringing it up."
Martin Bubbs Hohulin, R-Lamar sounded the only dissenting vote. Hohulin, although a co-sponsor of the bill, said he primarily favored the bill put forth by Ron Auer, D-St. Louis, which also proposed to remove the sales tax for parks and conservation.