Alabama lawmakers approve reduction in state sales tax on groceries

MONTGOMERY, Ala. (AP) — Alabama lawmakers on Tuesday gave final approval to a 1% reduction of the state sales tax on food, as lawmakers in both parties said families are being hurt by soaring grocery prices.

The Alabama Senate voted 34-0 for the legislation that now goes to Gov. Kay Ivey for her signature.

The reduction, if signed into law, will lower the state sales tax on food from 3% to 2% beginning Sept. 1. Lawmakers in 2023 reduced the tax from 4% to 3%. An additional reduction to 2% was planned but hinged on budget growth that did not materialize.

“We’re still one of a few states that taxes groceries. We’re headed toward zero taxes, we’re headed in the right direction. This is big,” Republican Rep. Danny Garrett, the sponsor of the bill, said.

Garrett said the reduction, “will benefit a broad base of Alabama.”

The reduction will cost the state about $121 million annually in tax revenue that would otherwise goes to the Education Trust Fund.