Grocery tax drops from 5 cents to 3 cents Sunday

If you normally do your grocery shopping on Saturday, you might want to wait a day to save a little money. The key word is little.

Beginning Sunday, the state's tax on groceries falls from 5 cents on the dollar to 3 cents on the dollar. The decrease is part of the property tax relief plan the state Legislature approved earlier this year.

Unprepared foods -- including snacks, beverages, seasonings and deli salads or sandwiches -- will be taxed at the new rate. Alcoholic beverages, coffee by the cup, tobacco and hot foods -- such as deli chicken -- and nonfood items will still be taxed at the 5 percent rate.

A resident who spends $100 a week on groceries will save about $2 a week, or $104 a year, assuming all items are taxed at the lower rate.

Adrienne Fairwell, a spokeswoman with the state Department of Revenue, said grocery stores across the state are clear on which items fall under the new rate. She said the department has not fielded any questions from retailers about what items do or do not qualify for the lower rate.

"We're expecting a seamless transition," she said.

Chris Early, assistant manager of the Wal-Mart Supercenter on East Main Street, said the store is ready for the changeover. She said cashiers would not require any training about which items are taxed at which rate because the store's computerized price scanning system would do all the work.

Ann Cheshire, a spokeswoman for Mauldin-based Bi-Lo, said making the change will be as simple as flipping a switch.

"We'll just click over to the new tax-rate structure," Cheshire said. "Items are already flagged as food

or nonfood, and the computer will recognize whether they're taxed at 3 percent or 5 percent."

Anyone 85 or older currently gets to pay 4 percent sales tax on groceries as a senior citizen discount. With the new tax rate, they will be charged 3 percent.

Candice Haroun, who was shopping at Wal-Mart Wednesday, said she spends at least $100 a week shopping for her family. She said she was unaware that she soon would be paying less in taxes.

"Anything that saves me a dollar is good, especially as high as things are getting to be," Haroun said.

Gwen Hollis, who was shopping at the Bi-Lo on Fernwood Road, said she spends about $75 a week and was looking forward to having a little extra change in her pocket. But she said the Legislature didn't go far enough in its tax-swap plan.

"I think they need to do away with (the tax on groceries) completely," she said. "But I'll find something to do with the money. It may be a blessing to someone in need."

Meanwhile, the statewide sales tax on all other purchases will increase a penny to 6 cents on the dollar beginning June 1.

Robert W. Dalton can be reached at 562-7274 or bob.dalton@shj.com.