The State of Arkansas may become the most recent state to eliminate taxes on food ingredients from grocery stores.

 

Arkansas Governor Sarah Huckabee Sanders made the announcement on Tuesday. Such a move is estimated to save Arkansas taxpayers around $10.9 million annually. The measure, similar to one that has recently gone into effect in Kansas, would apply only to state sales tax. Local taxes would still apply.

 

Lawmakers are also expected to consider the Good Neighbor Act, a bill that would expand liability protection for food bank donors by allowing the donation of leftover foods.

 

If passed by the Arkansas legislature, both bills would go into effect on January 1, 2026.