Kentucky panel rejects removing sales tax on food

Kentucky panel rejects removing sales tax on food

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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.

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