Governor Kay Ivey signed a bill Thursday that will cut the state’s grocery tax from 4% to 2%.

Ivey told reporters on Thursday afternoon, “I have signed HB479, the one percent reduction to the state’s portion of the grocery tax.”

“As Alabamians and Americans alike are grappling with tighter times, I am hopeful that this decision by the Legislature to slightly reduce the sales tax on certain food items will be truly felt by Alabama families,” Ivey said.

Passed during the final days of the legislative session, House Bill 479 by State Rep. Danny Garrett (R-Trussville) and State Sen. Andrew Jones (R-Centre) will drop the state’s sales tax on groceries by 1% in September automatically and an additional 1% as soon as September 2024, 2025 or a later year if the state projects 3.5% growth in the Education Trust Fund (ETF) for the next fiscal year. The average growth rate in the ETF annually is 3.6%, according to the Public Affairs Research Council of Alabama.

Jones told 1819 News on Thursday, “I’m very excited that working Alabamians will begin to see relief at the grocery store checkout this September.” 

“This $304 million tax cut is the largest in Alabama history and also the first step toward totally eliminating all state sales taxes on groceries,” Jones said. “This is a great day for all the men and women who drive Alabama’s economy.”

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