State & Local Government Policy, Business and Technology

Decried as Unfair, Taxes on Groceries Persist in Some States

Stateline: Thirteen states and many localities continue to tax the sale of groceries, even though the taxes disproportionately hurt the poor and may affect the quality, variety and even the amount of food they can afford to put on the table. The reason: The taxes provide a steady source of revenue in volatile times, making it difficult for states to get rid of them without finding a way to make up the revenue. Recent efforts in several of the states to eliminate or lower the taxes have failed. “States might be looking at getting rid of sales tax on groceries, but groceries are between a sixth and a seventh of all consumption,” said Scott Drenkard, analyst at the Tax Foundation, a nonpartisan tax study group.

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