Gov. Mike Beebe says farmers should be wary of the impact that tax cut proposals in the Legislature next year could have on their own tax exemptions.
Beebe told members of the Arkansas Farm Bureau at their convention in Hot Springs on Wednesday that they should be vigilant in watching the proposals during the session that starts in January.
The governor has proposed a half-cent cut in the state sales tax on groceries. Legislators say they want to see if there is room in the budget for other tax reductions.
Beebe says that further tax cuts would mean state budget cuts or raising other taxes.
Beebe’s grocery tax cut has won past Farm Bureau support because it didn’t affect a sales tax exemption on feed, seed and fertilizer.