Shreveport News: Why Your Grocery Bills Won’t Be Getting Cheaper Yet

SHREVEPORT, LA – One state lawmaker from the Shreveport area has been working to give residents a tax break. But the proposal from State Representative Danny McCormick of Oil City fails in committee.

McCormick wanted to do away with the local sales tax on food and drinks you buy at the grocery store. But this measure drew quite a long line of opponents. McCormick says Louisiana is one of the states that pays a larger percent of their income on food when compared with other states. There is currently no state income tax on groceries. But local governments do tax groceries.

Why Should Louisiana Cut the Tax on Groceries?

McCormick says his proposal would "help the folks who need a break right now, young families with children and the elderly on fixed incomes." McCormick says many residents in northwest Louisiana  travel into Texas to buy their groceries to avoid paying sales taxes on skyrocketing grocery bills.

What Groups Oppose this Tax Break?

But the opposition came from several fronts. Drew Talbot from the Louisiana Association of Tax Administrators told the House Ways and Means Committee his opposition:

Has nothing to do with the tax policy decision on whether or not to charge local sales tax on food for home consumption. But the opposition is based on the impact this will have on local governments.

He says this will decrease funding for local communities around the state by about $683 million dollars.

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McCormick’s plan does not provide a way to replace this revenue for local governments.

Here Are Some of the Towns Actively Opposing This Tax Break:

Town of Haughton

City of New Orleans

Haynesville

Benton

Shreveport

Minden

DeSoto Police Jury

Guy Cormier, President of the Police Jury Association of Louisiana also told the committee this bill would put quite a burden on many municipalities. He says Louisiana does not have the money to offset this cut to cities and towns across the state. Cormier also said “I guarantee you this would crush school boards, city governments, parish governments, District Attorneys and many other local government entities.”