May 1, 2023 Group Watch: Grocery Tax Cut Supported By Full Senate
All members of the Alabama Senate have signed onto a proposal to cut the grocery tax in half this year, with a full cut on the way. The fact that all 35 Senators have signed on as co-sponsors makes the bill by Sen. Andrew Jones the frontrunner. Alabama has a sales tax rate of 4 percent, and some local jurisdictions impose an additional sales tax of up to 7 percent, making the total sales tax rate in certain parts of the state as high as 11 percent. The bill would begin phasing out the state sales and use tax on food September 1. Jones’ bill comes at a time the state has record budget surpluses and the highest employment rate in the history of the state. The bill does not require any offsetting tax increases, and is estimated to cut taxes by $304 million.
