SHOPPERS are sharing their thoughts on one state’s decision to eliminate the food tax.
Once it takes effect in 2025, it will save more than 12 million Americans money.
The Illinois state food tax will be eliminated as part of the 2025 budget, it was announced earlier this week.
Lawmakers approved a state budget for next year that will eliminate the existing 1% tax on groceries.
The budget needs to be signed by Governor JB Pritzker before the changes can be implemented.
For the most part, it’s good news for Illinois’ 12.5 million residents.
However, some Illinois residents pointed out on Facebook that they will still have to pay taxes on certain non-food grocery items.
Foods prepared for immediate consumption, alcoholic beverages, soda, candy and cannabis-infused foods would still be subject to the state’s full sales tax rate.
One wrote on Facebook: “This is very misleading because many items that I consider to be groceries are not considered groceries by the state of Illinois.”
Others thought the tax cut wouldn’t make enough of a difference.
“1% food tax on $100 worth of groceries translates into $1 in savings. Whoopity doo!” posted one.
“Wow, this will really help,” said another. “Look at the cost of everything. That’s a pittance.”
HOW MUCH WILL YOU SAVE?
The average family of four in Illinois will likely save about $130 a year thanks to the tax’s repeal.
The average family of four spends $13,055 a year on groceries, according to Rocket money.
Therefore, the 1% tax reduction should lead to a savings of $130 for families in the Prairie State.
Claims to tax groceries
Illinois is far from the only state with a sales tax on food
Alabama – 3%
Arkansas – 0.125%
Hawaii – 4.44%
Idaho – 6%
Kansas – 2%
Mississippi – 7%
Missouri – 1.225%
Oklahoma – 4.5%
South Dakota – 4.2%
Tennessee – 4%
Utah – 1.75%
The food tax was previously suspended from July 2022 to June 2023.
Governor Pritzker proposed repealing the tax again when he presented his budget proposal earlier this year.
“It’s yet another regressive tax that we simply don’t need,” he said during his State of the State and Budget address in February.
“If it reduces household inflation from 4% to 3%, even if it just puts a few hundred dollars back into families’ pockets, that’s the right thing to do.”
See three traps that retailers are using to make you spend more at the supermarket.
And read on for five different ways to lower your grocery bill.
This story originally appeared on The-sun.com read the full story
