With food prices soaring, bill filed in NC House to study eliminating grocery tax

Friday, January 27, 2023
RALEIGH, N.C. (WTVD) -- With every trip to the grocery store, North Carolinians are shelling out some money for the grocery tax. It's an added cost to rising food prices, but there is an effort to look into possibly getting rid of the tax.

Rep. Ben Moss, R-District 52, has just filed legislation in the General Assembly to study excluding groceries from sales tax.
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According to North Carolina Department of Revenue, there is no state tax on groceries, but the department does track the 2% local sales and use tax on food for home consumption at the county level. That tax brought in over 400 million dollars and that is not including December 2022.

Meanwhile, the inflation rate has slipped and now sits at 6.5%. One economist said he believes it will continue to drop through 2023.

"I think by the end of this year, we could be close to 4% over year inflation, and I think that's a combination of improvements in the supply chain and the federal reserve policies," said NC State Economist Mike Walden.

Eggs are reaching historic high prices and have more than doubled in the past year because of the Avian flu outbreak and other factors.
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The added costs are putting stress on people in different ways.



One shopper told ABC11 that it's getting harder each week to stretch her money, while a Wake County mother said the high cost of eggs is forcing her to switch up what she serves her children in the morning.

"Normally I would get like three cartons of eggs per month, but now I can only get one carton," said Raleigh resident Shinetta Fields.

Willow Springs resident Tammy Salinas added. "I shop every Sunday. I don't leave Walmart without spending $400, and I don't have nearly what I used to get."

The USDA said growth in food prices should slow this year.
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