June 5, 2023 Group Watch: Legislature Passes Largest Tax Cut in AL History
State lawmakers reached a final agreement on how to cut the grocery tax. As prices have risen across the country, Alabama’s 4-percent sales tax on food has remained the same, leaving families with the compounded expense – until now. Thanks to the state’s historic $3 billion budget surplus, legislators passed a historic measure to cut the tax in half. The tax cut measure headed to Gov. Kay Ivey’s desk is a 1-percent cut this year followed by an additional 1-percent reduction next year, if education revenue stays consistent. The tax cut would reduce revenue in the Education Trust Fund by $318 million annually once fully implemented. However, that money will go back to the taxpayers at the grocery store. A movement to eliminate the grocery tax in the state has been ongoing for more than 20 years.
