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(Little Rock) (AP) – Gov. Mike Beebe is proposing a reduction in the state’s grocery tax that would be triggered if the state’s budget obligations in several key areas decline over a six-month period.

Finance officials on Thursday said Beebe is calling for reducing the state’s grocery tax from 1.5% to 1/8th percent. The cut would eliminate all but a portion of the sales tax that was approved by voters as part of a constitutional amendment.

The tax cut would be triggered if deductions in several key areas decline by at least $35 million for six consecutive months. The deductions include the state’s desegregation obligations and payments for certain bonds.

The tax cut was part of a $4.9 billion general revenue budget proposal for next year that Beebe’s administration detailed to lawmakers.

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