Voters in Maine will have the opportunity to veto a tax reform on the June ballot.  The law lowers the top income tax rate, expands the sales tax to new goods and services and raises the meals and lodging tax.

The Oklahoma Senate Finance Committee has approved a bill to send to the Senate floor that would eliminate the sales tax on groceries once the state revenues are able to recover.  This measure will also require the state to reimburse cities and counties for the local sales tax losses.

South Dakota Democrats are sponsoring House Bill 1255, which aims to exempt groceries from the state’s 4% food sales tax while increasing the general sales tax to 4.3%.  This tax would not affect locals, which could still tax food and other purchases at 2%.  South Dakota is only one of 14 states to tax unprepared food.

The South Dakota bill that would have eliminated the 4% state tax on some food while raising taxes on others has been killed in the House, and is going back to the Chamber for reconsideration.

On February 19th an Alabama Senate committee passed SB 115 sponsored by Senator Hank Sanders. This bill would be the first step in amending the state constitution to remove the state’s 4% grocery tax in 2011.

HB 2588 introduced 22 January 2009, would if passed remove the remaining 1.5% state sales and use tax from food for human consumption. If passed it will become effective 1 July 2010.