Governor Sanders announces Grocery Tax Relief Act, Good Neighbor Act

LITTLE ROCK — Governor Sarah Huckabee Sanders today announced the Grocery Tax Relief Act and the Good Neighbor Act. The Grocery Tax Relief Act will repeal the state grocery tax. The legislation’s lead sponsors are Senate President Bart Hester (District 33) and Representative Kendon Underwood (District 16). The Good Neighbor Act expands protections for food donors and food banks. The legislation’s lead sponsors are Senator Breanne Davis (District 25) and Representative Chad Puryear (District 25).
“The reckless tax-and-spend policies of the Biden Administration drove food prices through the roof. The Grocery Tax Relief Act ends our state’s most regressive tax, the state Grocery Tax, and eases the burden on families just trying to put food on their tables,” said Governor Sanders. “We’ve seen how often food goes to waste instead of helping a family in need. The Good Neighbor Act opens the door for more organizations to donate leftover food and ensures generous Arkansans don’t have to worry about lawsuits.”
“Working families deserve every break we can help provide especially at the grocery store. I am proud to do my part in helping deliver relief by letting them keep more of their hard-earned money,” said Senate President Bart Hester.
“With so many hungry people across our state, good food should not be going to waste. I’m proud to work with Governor Sanders to ensure good food goes to those who need it most," said Senator Breanne Davis.
“For too long too much has been taken out of hard-earned paychecks, but under Governor Sanders’ leadership, families will pay less in income tax, property tax, and now less tax at the grocery store too,” said Representative Kendon Underwood.

We have some great organizations working across our state to address food insecurities. The Good Neighbor Act encourages more donors to participate by addressing liability barriers. Anything we can do to encourage good faith donors is a win and I appreciate the Governor for making this a priority,” said Representative Chad Puryear.
The Grocery Tax Relief Act repeals the state grocery tax on food ingredients, returning nearly $10.9 million to the taxpayer annually. This bill will not impact county and municipal grocery taxes.
The Good Neighbor Act expands liability protections to food bank donors including retail grocers, wholesalers, hotels, motels, restaurants, caterers, farmers, nonprofit food distributors, schools, churches, religious organizations, and hospitals. It also provides protection to food banks who then distribute those food donations to the community.
The Sanders Administration is working across the board to eliminate food insecurity. Earlier this session, Governor Sanders signed SB59 into law providing every student in Arkansas with free school breakfast. The legislation also repurposes Medical Marijuana tax revenue to ensure both Summer EBT and Arkansas’ free lunch and breakfast programs are fully funded into the future.
Governor Sanders previously announced Arkansas will continue its Summer EBT program this year after serving 260,000 last summer. The Governor previously signed legislation to provide free school lunches for students who previously qualified for reduced-price meals.