Alabama lawmakers approve cut in state’s 4% grocery tax

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Alabama lawmakers approve cut in state’s 4% grocery tax
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Alabama is one of only three states that tax groceries at the same rate as other purchases.

MONTGOMERY, Ala. — Alabama families could soon pay less at the grocery store after lawmakers Thursday voted to remove half of the 4% state sales tax on food.

The bill would reduce the 4% tax on food to 3% on Sept. 1. It would drop to 2% on Sept. 1, 2024, provided that tax collections to the Education Trust Fund are projected to rise more than enough to offset the loss. The Senate on Thursday quickened the pace of the tax removal but also increased the required revenue growth from 2% to 3.5% to safeguard against a loss in education funding. The House accepted the change on Thursday afternoon.

If the growth requirement isn't met to drop the tax to 2% in 2024, it would be reduced in the next year that the growth requirement is satisfied.

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