Panel says no to sales tax on grocery store food

FRANKFORT, Ky. - 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 percent 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.