A one-time, two-month holiday on Alabama’s state sales tax on groceries begins today. HB 527 by Rep. James Lomax, R-Huntsville, will reduce the state grocery tax from 2% to 0% starting today and continuing through June 30. The state grocery tax rate will return to 2% on July 1.
Alabama Arise executive director Robyn Hyden released the following statement Friday about the law’s implementation and what should happen next:
“Two months is a good start toward forever. Eliminating the state grocery tax – even temporarily – will make it easier for every Alabamian to make ends meet, especially in this time of persistently high food prices. People who are struggling to make ends meet will benefit the most of all.
“The grocery tax is a cruel tax on survival. It drives many families deeper into poverty, and Alabama Arise remains committed to the goal of eliminating it entirely. Arise members from every corner of our state have advocated tirelessly for decades for Alabama to untax groceries. And our work will continue until the state grocery tax is a thing of the past.
What should happen next
“The state grocery tax reductions in 2023 and 2025 were essential steps toward tax justice. But Alabama still remains one of nine states taxing groceries, and our legislators should commit to removing our state from that shameful list once and for all.
“As we work to untax groceries, we also must protect funding for our children’s education. Lawmakers should work together to end the state grocery tax sustainably and responsibly without harming Education Trust Fund revenues.
“Arise is open to numerous ideas for replacement revenue. We continue to support our longstanding proposal to replace grocery tax revenue by capping or ending the state income tax deduction for federal income tax payments. Alabama is the only state to allow this full deduction, which overwhelmingly benefits the wealthiest households. Closing this loophole would protect funding for public schools and ensure Alabama can afford to end the state sales tax on groceries forever.”