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Posted: January 7, 2011 3:46 p.m.

Panel calls for reinstating state grocery tax

ATLANTA (AP) — A panel studying an overhaul of Georgia's tax code has recommended reinstating the state sales tax on groceries.

The Special Council on Tax Reform and Fairness for Georgians said Friday the state should also lower the personal income tax from 6 percent to 4 percent by 2014. It recommended gradually stepping down the state's corporate income tax in a similar fashion.

The panel also thinks the state should boost its tax on cigarettes from 37 to 68 cents a pack.

The 11-member council — created last year by the state Legislature — delivered its findings Friday to House Speaker David Ralston and Lt. Gov. Casey Cagle after six months of work.

Lawmakers would need to approve any changes. The tax hikes could face resistance in the GOP-led Legislature.


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