Lawmakers ponder sales tax increase
(January 9, 2004) — (Little Rock-AP) -- A bill introduced in the Senate to help pay for education reforms would raise the state sales tax by one percent -- but it would eliminate the sales tax on food and food ingredients. If the bill is approved, the state sales tax would rise from fiv-point-one-two-five percent to six-point-one-two-five percent. The net gain would amount to about 225 million dollars a year for school improvements. School funding formulas under consideration would require additional revenues of up to about 390 million dollars per year. So, other taxes would still have to be raised.