MONTGOMERY, Ala. (WHNT) — Alabama Arise, a statewide, member-led nonprofit organization that focuses to improve the lives of Alabamians who are marginalized by poverty celebrated a bill that will reduce the state tax on groceries.
HB 386, sponsored by Rep. Danny Garrett, R-Trussville, will reduce the state sales tax on groceries from 3% to 2% beginning on Sept. 1.
The law also will give cities and counties more flexibility to reduce local grocery taxes if they choose to do so. The grocery tax reduction will be Alabama’s second in three years, building on a 2023 law reducing the tax from 4% to 3%.
Alabama Arise staff members participated in the ceremonial bill signing event that Gov. Kay Ivey held for the legislation at the State Capitol in Montgomery on Thursday.
“Reducing the grocery tax is especially critical in this time of persistently high food prices,” Alabama Arise executive director Robyn Hyden said. “The grocery tax drives many families deeper into poverty, and Alabama Arise remains committed to the goal of eliminating it entirely.”
Untaxing groceries has been one of Arise members’ top advocacy priorities for decades.
Hyden said she was thankful for the years of work that current and former lawmakers put in to make the recent grocery tax reductions possible.
“Arise appreciates Rep. Danny Garrett and Sens. Andrew Jones and Arthur Orr for guiding HB 386 through the Legislature, and Gov. Kay Ivey for signing it,” said Hyden. “We’re thankful for the unanimous legislative support on the bill this year. And we’re grateful for former Rep. John Knight, former Sen. Hank Sanders, Sen. Merika Coleman, Reps. Laura Hall, Penni McClammy and Mary Moore, and so many other legislators whose determined work over so many years laid the groundwork for this progress.”
“It is important to ensure grocery tax elimination doesn’t harm our children’s education in the long term,” Hyden said. “Closing the skewed federal income tax deduction loophole would protect funding for public schools and ensure Alabama can afford to end the state sales tax on groceries forever.”
Alabama is one of only 10 states still taxing groceries.
Ivey officially signed the bill into law in May.
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