JEFFERSON CITY — A Democratic candidate for governor called on Missouri lawmakers Tuesday to take up her call for the elimination of state and local taxes on food.
House Minority Leader Crystal Quade, D-Springfield, told reporters during a video call that the concept has the support of both Democrats and Republicans at a time when inflation has boosted grocery bills.
“Our families are struggling,†Quade said. “Everyone will benefit from this change. Everybody buys food.â€
Under Quade’s plan, the state would repeal a 1.225% state tax on food, as well as local taxes charged for groceries, resulting in a $1.6 billion cut in tax revenue.
Local officials have helped kill off previous efforts to end the tax, arguing it will result in financial losses that would be made up by laying off police and fire workers, as well as forcing cuts to other city services.
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But Quade said the state would create a fund to help replace that lost local revenue. It could be funded by closing tax loopholes, she said.
The savings to families could top $700 per year.
Quade is facing Springfield businessman Mike Hamra in the Democratic primary. Republicans seeking the GOP nomination include Lt. Gov. Mike Kehoe, Secretary of State Jay Ashcroft and Sen. Bill Eigel, R-Weldon Spring.
Quade acknowledged that passage of her version will be tough during an election year. But, she said the move has bipartisan support and could gain traction when the annual legislative session begins Jan. 3.
Missouri, which taxes groceries at a lower rate than its 4.225% sales tax rate for most products, is one of just 13 states that places a tax on food.
But, past efforts to eliminate the tax have floundered.
Prior versions showed the elimination of sales tax on groceries would cost $200 million in state funds and $1.3 billion in local funds beginning in fiscal 2025.
The City of ºüÀêÊÓƵ, under legislation debated earlier this year, would lose $17 million annually, according to one of the bill’s fiscal notes.
Brentwood Mayor David Dimmitt earlier argued that his city’s five grocery stores generated $4.3 million in revenue last year, representing about 15% of the city’s total revenue.
“This significant loss would seriously impact our ability to keep providing core services to all who live, work, and play in our city,†he wrote in a Post-Dispatch opinion piece.