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On Thursday, Gov. Kay Ivey signed into law legislation that will reduce Alabama’s tax on groceries.
With this signing, it means that on Sept. 1, the 4 percent tax on groceries will be cut to 3 percent. On Sept 1, 2024, the tax will be reduced to 2 percent only if the revenue to the Education Trust Fund (ETF) budget increases by 3.5 percent.
“As Alabamians and Americans alike are grappling with tighter times, I am hopeful that this decision by the Legislature to slightly reduce the sales tax on certain food items will be truly felt by Alabama families,” Ivey said after signing the legislation.
The reduction comes after decades of attempts to reduce or eliminate the grocery tax by many politicians and organizations. Alabama is one of only three states in the country that fully taxes groceries. The legislation also freezes local taxes on groceries which can often get up to a 10 percent tax.
Chris Sanders, communications director for Alabama Arise, released a statement praising the signing but added that work must still be done to eliminate the tax altogether.
“The state grocery tax is a cruel tax on survival, and Alabama Arise remains committed to the goal of eliminating it entirely. We look forward to working with the state’s new Joint Study Commission on Grocery Taxation to find a sustainable and responsible path forward to remove the rest of the state grocery tax. There are many better options to raise revenue for vital services in Alabama than taxing a necessity of life.”
