Alabama bill halves 4% sales tax on food

MONTGOMERY, Ala. — Alabama lawmakers Thursday voted to remove half of the 4% state sales tax on food.

Lawmakers unanimously gave final approval to the legislation. It would gradually remove half of the state’s 4% sales tax on food by Sept. 1, 2024, provided there is enough revenue growth to offset the loss. The bill now goes to Alabama Gov. Kay Ivey.

Alabama is one of only three states that tax groceries at the same rate as other purchases.

“This is going be great for working Alabamians. Folks who are struggling to put food on the table,” Republican Sen. Andrew Jones, sponsor of the Senate version of the bill, said after Senate passage.

Similar measures had been proposed unsuccessfully for decades.

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.