Sunday, April 29, 2007

All eyes on Senate Finance for tax proposal

Tax on groceries

Sixteen states have state-imposed tax on food. Three others allow local governments to tax only food.

Highest state-imposed food tax rates

State Amount

Mississippi 7 percent

Tennessee 6 percent

Kansas 5.3 percent

Lowest cigarette taxes per pack

State Amount

South Carolina 7 cents

Missouri 17 cents

Mississippi 18 cents

Tennessee 20 cents

U.S. Median 79 cents

* SOURCE: Federation of Tax Administrators as of Jan. 1, 2006

By Bobby Harrison
Daily Journal Jackson Bureau

JACKSON - The state House's overwhelming passage of legislation cutting the tax on groceries and increasing the cigarette tax places the issue squarely back in the lap of Senate Finance Committee Chairman Tommy Robertson, R-Moss Point.

Last year Robertson was a leading advocate of the proposal. But this year he had said he personally opposes the concept and may kill it in his committee by not calling it up for consideration.

It is not unusual for powerful committee chairmen to kill legislation by not allowing it to be voted on, but in recent years it has become more difficult to kill major pieces of legislation in such a way because of public pressure applied.

Plus, Robertson would be taking a position in direct conflict with the person who made him chairman of Finance - Lt. Gov. Amy Tuck, who first proposed the concept to decrease the grocery tax and offset the revenue loss by increasing the cigarette tax.

Tuck, who is still hoping Robertson brings up the Senate bill by Wednesday's deadline, hailed the House passage of the legislation last week as a step in the right direction.

"I think there is strong support for the bill across the state," Tuck said. "I hope all our members look at the importance of the bill, look at that support and consider it because it is good public policy."

Senate Public Health Committee Chairman Alan Nunnelee, R-Tupelo, who is the chief author of the Senate version of the bill, was more direct. He said the House's strong vote indicates the support the legislation has, and it should not be bottled up in committee.

"I think you would see the same support in the Senate," said Nunnelee. "...I think either the Senate bill or the House bill merits a vote by the committee and the full Senate."

But not everyone believes Robertson should bring up the legislation.

Sen. Charlie Ross, R-Brandon, who has been a leading opponent of the legislation and is a candidate for lieutenant governor, said, "This is not a situation where people have not been able to vote on the issue. We voted three or four times last year. This is different from a situation where a body has not been allowed to vote."

Last year the House and Senate passed two versions of the bill, but both proposals were vetoed by Republican Gov. Haley Barbour. The Senate could not garner the two-thirds majority needed to override Barbour's veto.

Sen. Shannon Walley of Leakesville, one of the few Democrats to uphold Barbour's veto last year and who recently switched to the Republican Party, doesn't want to vote on the issue again.

"Not really," he said. "I would rather see it die in committee."

In an election year the issue is one that is difficult for many legislators - especially Republicans - to confront. Polls show the bill is popular, but at the same time it is opposed by a powerful Republican governor who holds tremendous sway over legislators in his own party.

The issue is being considered among a backdrop of a March 1 deadline for people to qualify to run for political office.

That could explain why the House version of the legislation received 91 votes - more than it received at any point last session.

Robertson has until Wednesday to take up the Senate version of the bill, but until March 13 to act on the House proposal.

Both cut the food tax from 7 percent to 3.5 percent and increase the cigarette tax from 18 cents to $1 a pack.

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