Georgia Not likely to Reinstate Food Tax

A proposal that would restart a state sales tax on groceries has little traction.

January 06, 2012

ATLANTA - For years, lawmakers have talked about bringing back the state sales tax on groceries, with little success. Recently, the food tax is back in the news after a commission on tax reform suggested reinstituting the state??s sales tax on food. However, Georgia lawmakers appear unlikely to approve such a measure, the Ledger-Enquirer reports. A more robust state budget has Georgia focusing on other areas, rather than looking for ways to raise taxes.

State Sen. Josh McKoon said Georgia would probably look more to slashing energy consumption taxes for manufacturers. While tax reform will top talks, McKoon said that many lawmakers wouldn??t consider adding back the tax on groceries, especially with the governor against such a tax.

"From a practical standpoint, it would be hard enough to rally a majority of the General Assembly to pass that sort of tax increase, but then if you do that in the face of the governor saying, 'Look I??m going to veto it,?? you know, I don??t really see where you get past first base on that," said McKoon.

The state had a 4% tax on groceries until the General Assembly nixed it in 1998. "When we did that several years ago, when Zell Miller was governor, we were not in dire straits," said state Rep. Calvin Smyre. "Money was flowing. We were in double-digit revenue growth every year, and that was a way to give some relief back. So it would have to be dire circumstances for us to remove it. And now, with the uptick in the revenues for the last few months, I just think if we can hold our feet to the fire on the budget side, we may be able to weather this storm."

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