Arkansas governor says he's opposed to grocery tax hike

LITTLE ROCK, Ark. (AP) — Arkansas' governor said Thursday that he's opposed to raising the state's sales tax on groceries, likely killing an idea that some lawmakers were considering as a possible way to make room for further income tax cuts.

Republican Gov. Asa Hutchinson announced his opposition to raising the state's 1.5 percent tax on groceries in a letter to the Legislative Tax Reform and Relief Task Force, which has been looking at way to overhaul Arkansas' tax code and push for more income tax cuts. The panel last week voted to study proposals to raise the tax and, in conjunction, create a credit or rebate for moderate and low income residents to offset the hike. The sales tax is set to decrease to .0125 percent in January.