Kentucky Governor Steve Beshear’s Blue Ribbon Commission on Tax Reform has rejected a proposal to tax food at grocery stores. Consultants say a 6 percent tax could generate about $500 million each year. The 17-member commission dismissed it as a burden on the poor. The Courier-Journal reports members met for nearly four hours yesterday to shorten a list of 96 recommendations.
Economic consultants looking for ways to improve Kentucky's tax system have offered a variety of options that include imposing a tax on food and a variety of services ranging from haircuts to automotive repairs to funerals.
Tennessee state officials want businesses selling food to start preparing for reduced rates of sales and use tax. Effective July 1st, those tax rates on sales of food and food ingredients will be cut to 5.25%, down from 5.5%.