Missouri is one of just 13 states that levies a sales tax on grocery food items.
Citing the hefty burden on low-income shoppers and rising cost of food, several have moved to reduce the burden of the grocery sales tax. began phasing it out this year and suspended the tax for one year.
But in Missouri, renewed bipartisan efforts to eliminate the sales tax on take-home grocery food this session appear stalled.
A stand-alone bill to eliminate the state portion of the grocery sales tax, sponsored by Sen. Mary Elizabeth Coleman, R-Arnold, was approved by committee last month but has yet to be placed on the Senate鈥檚 debate calendar.
鈥淚鈥檓 not as confident that that will have a path forward,鈥� Coleman said in an interview Wednesday with The Independent, adding that typically, bills that haven鈥檛 reached the other chamber at this point in session 鈥渉ave a harder time鈥� ultimately passing 鈥� although she is 鈥渘ot pessimistic鈥� because it is a bipartisan issue other states have tackled.
Six bills in the House have been filed to eliminate the grocery sales tax but none have been assigned to committee.
Proponents successfully added the grocery tax proposal as an amendment to an unrelated bill two weeks ago in the Senate. But last week, after the estimated cost of eliminating the tax was determined, the bill鈥檚 sponsor demanded it be removed, effectively derailing both measures.
Coleman said that she did not support the removal of the grocery tax provision last week.
鈥淚 was really disappointed to see that we were stripping that off,鈥� she said.
The for the grocery tax loss estimates that the state would lose over $1.3 billion in local funds and $200 million in state funds each year beginning in fiscal year 2025. Coleman鈥檚 stand-alone bill included only the state tax repeal.
Sen. Lincoln Hough, R-Springfield, raised concern about the price tag, arguing during the Senate debate that the legislature鈥檚 negotiated last year would provide similar help to low-income families.
鈥淭his is going to be an interesting litmus test as to whether or not the majority of the (Senate) still continues to believe that we need to be lessening the tax burden more holistically, or if we鈥檙e starting to say maybe enough is enough,鈥� Hough said, adding that 鈥渁 number of reductions to the individual income tax鈥ill continue to decrease the burden on individuals.鈥�
Coleman, who proposed similar legislation in the House last year, said taxing essential items like food poses an inordinate cost to the lowest-income consumers.
鈥淚 don鈥檛 think that the taxpayer is wanting us to tax food,鈥� she said. 鈥淚 really don鈥檛 believe that.鈥�
The lowest-income U.S. households spent over 30% of their incomes on food in 2021, according to released last month, while middle-income families spent just 12%.
The price of at-home food nationally soared by around in 2022 compared to 2021.
Take-home grocery food items in Missouri are taxed by the state at a rate of 1.225%, which goes mainly to a fund for public schools. Localities levy additional grocery sales taxes at varying rates which can add .
鈥淚 would argue that food is a necessity,鈥� Coleman said in February during a Senate committee hearing. 鈥淎nd I find taxes that are essential items are some of the most regressive, harming the poor, and not the way to fund our state government.鈥�
Coleman鈥檚 bill would eliminate the 1% state sales tax, but not the local taxes. She said during Senate debate last week that local governments 鈥渨ere pretty concerned about the impact this might have on their budgets.鈥�
Eliminating the state sales tax, she said, would save a family of four around $87 per year on groceries.
But it isn鈥檛 clear what funding sources would backfill the lost revenue to education 鈥� a challenge several states face as they attempt to eliminate the tax, according to a Pew Trusts earlier this year.
鈥淢y question is your bill doesn鈥檛 address the shortfall. So we鈥檙e dependent upon other bills,鈥� said Sen. Doug Beck, D-Affton.
鈥淚 would prefer that that would be in one bill, that we could see that both things pass at one time,鈥� Beck added.
Mallory Rusch, executive director of the anti-poverty organization Empower Missouri, who testified in favor of the bill in February, said 鈥渨e鈥檝e been put in a little bit of a bind鈥� by Missouri because the tax is tied to education.
鈥淲e believe that it is really important to fully fund education,鈥� Rusch said, 鈥渂ut we don鈥檛 feel like that education funding should come on the backs of those who have the least across the state of Missouri.鈥�
Education entities raised to a similar House bill because of concern around funding.
The estimated the school district trust fund would lose over $115 million next fiscal year if the state sales tax were removed.
Rusch also said that local sales taxes can be 鈥渇ar more burdensome鈥� than state ones.
Coleman said they could replace the funds with surplus revenue, or through other legislation, such as by passing a proposal to legalize video lottery games, which needs to be used for education 鈥� though that is not guaranteed to pass.
Senate Minority Leader John Rizzo, D-Independence, during debate last week pointed to the state鈥檚
鈥淚鈥檓 not opposed to tax cuts,鈥� Rizzo said. 鈥淚f we are going to do that, I鈥檇 rather it affect a single mom, I鈥檇 rather affect a family that鈥檚 trying to make ends meet.鈥�
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