Bill to remove grocery tax in Missouri headed to debate floor

A proposed bill in the state House would cut the sales tax on grocery items for Missouri consumers, but also decrease the amount of funding schools receive.

House Bill 1992 (HB1992) would save the average family more than $80 per year or $7 each month if passed, said state Rep. Mary Elizabeth Coleman, the bill's sponsor.

Missouri is one of 13 states that taxes grocery items. The tax was originally passed in 1982 as part of the Missouri School and Highway tax, or Proposition C, and included a general sales tax for all items, including groceries, and currently is one of the ways Missouri schools receive funding.

The current tax rate for groceries is 1.225% and includes "all types of food items that may be purchased with Food Stamps. This includes food or food products for home consumption, seeds and plants for use in gardens to produce food for personal consumption and food items refrigerated or at room temperature," according to the Missouri Department of Revenue's website.

Rep. Coleman of Arnold, Missouri, said she does not want to decrease funding to education, but sees the importance of helping struggling Missouri families save some money on their grocery purchases.

"I think we can afford, without record budgets, to decrease the tax burden on the poorest of the poor, while at the same time fully-funding education using different funds," Coleman said. "I think that we can do both, get rid of this regressive tax that hurts the poor and make sure our education is fully funded under the foundation formula. We would just be using different funds to do so."

If the bill is passed, the tax rate would be reduced from 1.225% to 0.225% and Missouri schools would see a decrease in funding of $144 million, or about $160 per student. The remaining 0.225% is a constitutional tax, which goes toward the Parks, Soils and Water Tax and Conservation Sales Tax.

According to U.S. Department of Agriculture's summary findings, the Consumer Price Index (CPI) on grocery store items has increased 8.6% from February 2021, because of inflation. The price of proteins such as beef, poultry and fish have all increased by more than 10% since January of last year.

HB1992 is also supported by Empower Missouri, which "works to secure basic human needs and equal justice for every person in Missouri through coalition-building and advocacy," according to its website.

Coleman said some of the resistance the bill has received was caused by individuals not considering the $80 a year families could potentially save a significant enough amount to pass the bill. Coleman believes otherwise.

"I know there's some complaints from some of them that it's not a lot, but that's Christmas for many families with a couple kids," Coleman said. "So, again, in this time of rising inflation, Missouri can afford to take care of our kids education and make sure our poor can feed their families."

The next step will be for the bill to be debated on the House floor, which has not been scheduled.

Coleman said she believes the bill will likely be passed.

"I can't imagine that it's not going to pass the House. I think with the fights that have been taking place, it makes it more difficult to get legislation through this year, but I have every expectation that this will pass the house," she said.