February 19, 2024 Group Watch: AL Grocery Tax Likely to Remain Unchanged This Year
Growth in the Education Trust Fund missed the target that would trigger a 1 percent reduction in the state tax rate on groceries, meaning Alabamians will have to wait at least another year for a further reduction. A Legislative Services Agency official reported last week that revenues to the Education Trust Fund budget will grow less than 2 percent, below the 3.5 percent that would trigger a 1 percent cut in the tax under a law that passed last year. Alabama is one of 13 states that taxes groceries, and until September, was one of three states that fully taxed groceries. The 4 percent state tax, combined with local levies, added up to 10 percent to people’s food bills.
