Ways and Means Education Committee advances four tax bills, including grocery tax cut acceleration

The Ways and Means Education Committee on a committee motion gave favorable reports to four tax bills that would accelerate a scheduled grocery-tax reduction, allow local governments more flexibility to cut local food sales taxes, increase a retirement-withdrawal exemption for residents 65 and older, and raise several adjusted gross income and standard-deduction thresholds.

The measures discussed were House Bill 386, which would accelerate the 1-cent grocery tax reduction to Sept. 1, 2025; HB 387, which would let local governments reduce their local sales tax on food by ordinance or resolution without being constrained by local revenue-growth limits; HB 388, which would raise the defined-contribution retirement withdrawal exemption for people 65 and older from $6,000 to $12,000 per person; and HB 389, a package of income-tax threshold and standard-deduction increases. Committee members said the four bills together carry a fiscal note of roughly $191,200,000 in total tax reduction.

Why it matters: The bills would reduce tax liabilities for a range of residents and alter the degree of local control over food-sales taxes. Committee members described the package as measures that reduce the tax burden for retirees and households at specified adjusted gross income levels.

HB 386: Grocery tax reduction acceleration The committee…