Kentucky panel rejects removing sales tax on food

Kentucky panel rejects removing sales tax on food


FRANKFORT, Ky. (AP) - A panel appointed by the governor to study tax reform in Kentucky has rejected a proposal to tax food at grocery stores.

The idea was unpopular with the 17-member Blue Ribbon Commission of Tax Reform, which dismissed it as a burden on the poor. Consultants said a 6% tax could generate about $500 million each year.

The Courier-Journal reports the commission met for nearly four hours Tuesday to shorten a list of 96 recommendations. Members also voted to reject several other proposals, including one that would raise the coal severance tax rate, remove the property tax on airplanes and give a tax credit to people who home-school.

Lt. Gov. Jerry Abramson, who serves as chairman of the panel, says it is making progress.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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