May 29, 2023 Group Watch: Grocery Tax Cut Moves Ahead
A bill to cut Alabama’s sales tax on food moved closer to becoming law, winning approval in the Alabama House last week. The measure would cut the 4% tax to 3% on September 1 of this year. On September 1, 2025, the tax would drop to 2%. When fully implemented, the tax is expected to save Alabama taxpayers about $300 million a year. The bill passed by a vote of 103-0, and now goes to the Senate, where all 35 senators signed on as sponsors to a similar bill. The reduction to 2% in 2025 would be delayed if projected growth in revenues to the ETF are less than 2% in fiscal year 2025.
