SALES TAX CUT ON FOOD; LOWER TAXES ON GROCERIES EFFECTIVE TODAY

The shopper placed two cartons of soda in her almost-full grocery cart. Gloria Capshaw welcomed the news that her food costs were going down this week.

"It's fantastic," said Capshaw. "I came to Missouri from Wyoming, where taxes are considerably lower. We had a 4-cent sales tax there."

Taxes on groceries in Cape Girardeau were 6.725 per dollar until midnight Tuesday. As of 12:01 a.m. today, that figure dropped to 3.725 for groceries.

"You'd be surprised how much difference these few pennies can make over a year's time," said Capshaw, who is a pastor in the Charleston area. "It counts up."

Virgil Moran of Tanglewood agrees.

"Everyone has to put food on the table," said Moran. "Every penny saved is important."

The Missouri legislation's lowering of tax on groceries is part of a $322 million revenue reduction package approved by lawmakers in May of this year. The package also grants tax breaks on non-government pensions and accomplishes several smaller steps, such as eliminating the sales tax on purchases of medical oxygen and food sold from vending machines.

The lion's share of the tax reduction package is the grocery tax decrease, which will trim revenues some $230 million -- enough to comply with the constitutional revenue cap.

"Every time Missourians shop for food, they will realize the benefits of this legislation," said Gwen Ratermann, from the Missouri House of Representatives Communication Center. "The average Missouri family of four will save about a week and a half's worth of groceries each year."

This is a tax relief that hits families where they can benefit the most -- while shopping for groceries, added Ratermann.

Economists estimate that the average family of four will save $137 a year.

The savings will be more for many grocery shoppers, who spend an estimated $100 a week for groceries. With that weekly outlay, the savings would be about $156.

Shoppers agree that the tax cut is a nice surprise.

"I'll buy a few more groceries," said Angie Brown of Cape Girardeau. "Or, we may used the savings for something fun with the family."

Another shopper, Kyoko Green, of Cape Girardeau, was surprised at the new savings. "But, anything we can do to save a penny or two is great," she said.

The grocery tax relief gives working families more purchasing power at the grocery store and brings a great fairness to Missouri's tax system, said House Speaker Steve Gaw (D-Moberly), the bill's sponsor.

Items eligible for this tax reduction have been defined by the state according to Federal guidelines for the redemption of food stamps, which include most foods and food products for home consumption.

Alcoholic beverages, tobacco products, health and beauty care products and general merchandise items are not included on the list of tax-reduced items.

The tax cut also does not cover food already prepared at a grocery store, such as hot deli sandwiches.

Bakery items, however, are included on the three-percent exempt list.

A SAMPLING

Here is a sampling of grocery items which are eligible or not eligible for a reduction in state sales tax:

Eligible:

-- Fresh fruit and vegetables.

-- Meat, eggs, dairy products.

-- Ice and bottled water.

-- Coffee beans, ground coffee, instant coffee.

-- Bread.

-- Foods (not hot) sold through vending machines.

-- Spices, cooking spray, shortening.

-- Vegetable seeds and plants, fruit trees.

Not eligible

-- Hot prepared foods.

-- Food intended to be consumed on premises.

-- Alcoholic beverages.

-- Tobacco.

-- Soap, toothpaste, shampoo.

-- Vitamins, cough drops.

-- Hot drinks, such as coffee and hot chocolate.

-- Paper products.