MONTGOMERY — The Senate Education Budget committee passed a one-cent grocery sales tax cut and a sales tax reduction on machinery equipment on Wednesday.
Both bills were amended in committee on Wednesday, so they’ll have to pass the Senate and the House with four remaining days left in the session.
House Bill 386 by State Rep. Danny Garrett (R-Trussville) cuts the state's grocery tax cut by an additional 1%, bringing the total reduction to 2% since 2023.
“It goes ahead and removes the second penny on the grocery tax,” State Sen. Arthur Orr (R-Decatur) told the committee.
House Bill 387 was changed in committee via a substitute amendment that reduces the sales and use taxes on machinery from 1.5% to 1.25%.
“The thinking in talking to Pro-Tem Gudger, there was a desire to assist businesses as well with this tax cut,” Orr said.
The tax cut for businesses was criticized by Democrats on the committee.
Senate Minority Leader Bobby Singleton (D-Greensboro) said, “I don’t see why we have to try to play tit-for-tat to give business something just because we’re giving people and families a break.”
“Let’s give families a break. Business doesn’t have to get something every time families (get something) because families don't get something every time we give business (something). We shouldn’t have to play this tit-for-tat,” Singleton said. “They’re only asking for it because we’re giving families something.”
State Sen. David Sessions (R-Grand Bay) said the bill would help the agricultural industry.
“There is an advantage. Farm machinery in this state is taxed pretty substantially while in Georgia it’s not. You have a lot of people along the border in the Wiregrass area who may be going and buying all their equipment in Georgia and Alabama is not collecting that tax. It puts some of our dealerships in an unfair advantage and we’re not collecting anything. You drop it a little bit, perhaps those dealers can pick up some business and we actually pick up some tax off some equipment that we weren’t getting anything off of because it’s not totally doing away with the sales tax totally. I think it would be a plus for the agricultural community, especially along the border with Georgia,” Sessions said.
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