Gov. Kay Ivey has signed a bill into law to reduce the state’s grocery tax, something state lawmakers have sought for the better part of 20 years.
The sales tax will drop from 4% to 3& in September. It will then drop to 2% in September 2024, but only if tax collections for the Education Trust Fund rise at least 3.5%. The reports that if this growth doesn’t happen, the tax will drop to 2% in the next year that the growth requirement is satisfied.
Ivey and state lawmakers agreed the cuts would help families dealing with higher food prices. After signing the bill, she said, “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.”