Rep. Danny Garrett, R-Trussville, on Wednesday introduced HB 386, a bill to reduce the state sales tax on groceries from 3% to 2% beginning on Sept. 1. The Alabama House Democrats also endorsed forthcoming legislation to end the state grocery tax during a news conference Wednesday. Alabama Arise executive director Robyn Hyden released the following statement Thursday in response:

“Alabama Arise is excited to see widespread, bipartisan support for reducing the state sales tax on groceries. The grocery tax reduction in 2023 was an essential first step toward tax justice in Alabama, and we look forward to working with lawmakers to continue the progress on this vital issue this year.

“Further reducing and ultimately eliminating the state sales tax on groceries would provide meaningful help for Alabamians who struggle to make ends meet. Reducing the grocery tax benefits every Alabamian. And it is an important step toward righting the wrongs of our state’s upside-down tax system, which forces Alabamians with low and moderate incomes to pay a higher share of their incomes in state and local taxes than the wealthiest households.

“The state grocery tax is a cruel tax on survival. It drives many families deeper into poverty. And Arise remains committed to the goal of eliminating it entirely. Arise members from every corner of our state have advocated relentlessly for decades for Alabama to untax groceries. Our work will continue until the state grocery tax is in the dustbin of history where it belongs.

How to ensure the grocery tax reduction lasts

“It is important to ensure grocery tax elimination doesn’t harm our children’s education in the long term. Education Trust Fund revenues are strong enough for now to reduce the grocery tax without causing severe harm to school funding. But history tells us that good economic times don’t last forever. Lawmakers must work together to agree to a solution to untax groceries sustainably and responsibly.

“Arise is open to numerous ideas for replacement revenue, and we will continue working with the state’s Joint Study Commission on Grocery Taxation to find a path forward. 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 skewed loophole would protect funding for public schools and ensure Alabama can afford to end the state sales tax on groceries forever.”