Shoppers at grocery stores in Alabama will see a one-cent reduction in the state sales tax on groceries beginning on Friday.
Passed during the final days of the legislative session, the law sponsored 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% on September 1 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.
"I'm very pleased that working Alabamians will begin to see relief at grocery store checkouts around the state on Friday. A grocery tax cut has been talked about for decades, but the Alabama Legislature stepped up this year and made it happen through a bipartisan effort resulting in the largest tax cut in state history," Jones told 1819 News on Monday.
According to the Alabama Department of Revenue, the state sales tax on food will be reduced from 4% to 3% on September 1. The state sales and use tax rates will be further reduced to 2% on September 1, 2024, if there is sufficient growth in the state Education Trust Fund.
Food has the same meaning as the federal Supplemental Nutrition Assistance Program (SNAP) definition. SNAP-eligible food items generally include any food or food product for home consumption, except alcoholic beverages, tobacco, hot foods or hot food products ready for immediate consumption.
To connect with the author of this story or to comment, email caleb.taylor@1819News.com.
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