Food tax exemption remains in spotlight
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Mar 1, 2006 Posted by Bill Luckett
Eliminating the state sales tax on groceries is emerging as perhaps the biggest issue of the Legislature's 2006 budget session, and tomorrow (Thursday) will be a pivotal day for the idea. Casper Democrat Ann Robinson in the House and Casper Republican John Barrasso in the Senate are planning to introduce budget amendments tomorrow to lift the tax off food.
If the amendment succeeds in both the House and Senate, that will give clear direction to the conference committee that will meet next week to work out the differences between the versions of the budget that clear both chambers. That scenario would give the tax cut an excellent chance of taking effect. If the amendment passes in only one chamber but not the other, then it will be a bargaining issue for the conference committee, and its chances of taking effect are anybody's guess. If the amendment fails in both chambers, that will just be depressing.
Tomorrow is a pivotal day for the issue, but by no means is it the last word. Both chambers plan to begin second reading of the budget tomorrow, but they still have third reading to complete on Friday. So whatever happens to the amendments tomorrow can be changed on Friday. On the bright side, if the amendments fail tomorrow, we still have Friday to look forward to. On the other hand, it is conceivable that one of the amendments could pass tomorrow and then be deleted on Friday. My guess is that that would be an extremely unlikely scenario, but it is possible, so I thought I'd mention it.
The main difference between getting the tax removed in the budget bill, as opposed to any other bill, is that the tax exemption for food would only be in effect for two years instead of becoming permanent. Still, it would be a good start, and at this point, it's the last chance to get the tax removed at all.
As you may have noticed, the media are highly interested in this issue. Both TV stations that cover the Legislature full-time did bits on the food tax today, and the Casper Star-Tribune published an editorial in favor of both the food tax reduction AND Gov. Freudenthal's suggestion that the Legislature lower the overall state sales tax from 4 percent to 3.5 percent (which you can see if you go to: http://www.casperstartribune.net/editorial/ and then click on the story called, "Legislators have to choose").
And eliminating the sales tax on groceries is wildly popular among the people of Wyoming. Of course, most people will probably say "yes" when asked if they would like to pay lower taxes. But on this particular issue, I think the public sentiment goes beyond the inherent popularity of lower taxes. I think people genuinely feel that, from a philosophical standpoint, such a basic need as food should not be taxed. Hopefully, a majority of legislators feel the same way.
While this issue remains the main topic of the media's legislative coverage, the House Democratic caucus, and even the idle chitchat I've overheard not only at the Capitol Building but in diners and other eateries around town, there are many other issues weaving their way through the process. One of those is House Bill 92, the quality child care bill, which finally passed third reading in the House today after a lengthy debate. There were several amendments to the bill in the House. One major amendment is that, of the $14.3 million the bill contains to get the program started for its first year, $12.9 million of that money could not be spent until after next year's legislative session. So the House appears a little reluctant to get the program started. We'll see if the Senate feels the same way.