- Alabama House Republicans filed a bill to reduce the state sales tax on groceries from 3% to 2%.
- The bill, sponsored by House Ways and Means Education Committee chair Danny Garrett, would accelerate a timetable of a 2023 law that cut the tax on staple food items.
- The bill would reduce the state sales tax on groceries to 2% on October 1.
- Local grocery tax levies would not be affected by the bill.
- Democrats will propose their own legislation to reduce the state portion of the grocery tax.
- Garrett said there are enough revenues and reserves to accommodate a decrease to the state’s portion of the grocery tax.
- Sen. Andrew Jones said the grocery tax cut will be funded in part by allowing an income tax exemption for overtime wages to expire.
- The overtime exemption bill was expected to cost the ETF roughly $34 million.
- Kirk Fulford, deputy director of the Legislative Services Agency Fiscal Division, said the ETF is in “great shape” because of the Rolling Reserve Act.
Source: alabamareflector.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
