| Description |
The issue of whether grocery items should be subject to sales tax has been hotly debated, especially in the last several decades. As of the time of writing, only thirteen U.S. states out of fifty implement a statewide level of grocery sales tax at all. Of those that do, six tax groceries at a reduced rate. An additional four states provide refundable tax credits for grocery sales tax to some residents. In the last twenty-five years, twelve states have made changes to the rate at which they tax the sale of grocery foods, in almost all cases, lowering or eliminating the tax. Several more states are considering making such changes. Some states with low or no grocery sales tax rates have considered reinstating such taxes. In this thesis I will first examine relevant research and arguments on the issue. Next, I will examine changes in total state tax revenue and state sales and gross receipts tax revenue, state by state, in states that have changed their grocery sales tax rates in the last twenty-five years. I will attempt to look for relationships and patterns in these states' tax revenues after the tax rate change. |
