In Alabama, lawmakers are pushing for a bill to bring a little relief at the grocery store.
) - The price of groceries has been a hot button topic lately. Everything from eggs to beef and sweets have seen price increases. Alabama is one of 10 states that still taxes groceries. But in recent years, lawmakers have reduced the grocery tax from four percent to three.
In this session, they’re considering another proposed reduction that would bring it down to two cents per dollar. “I think people are aware that we’re one of the few states that taxes groceries, and by reducing this tax initially by 50%, that’s putting money back into the pocketbooks of taxpayers and some citizens who need it the most,” Representative Danny Garrett , the main sponsor of this bill, said. Alabama Arise, a non-profit organization that advocates for those living in poverty, says this bill will help those who need it the most. “This is a really regressive tax, which means it hits the people who have the least money the hardest, because that’s the people who spend more of their income on groceries, because you buy the necessities if you don’t have a whole lot of money,” Carol Gundlach, senior policy analyst at Alabama Arise said. The proposed reduction is not a very controversial topic as nearly fifty representatives are currently sponsoring the bill before the legislature. “Reducing the grocery tax has never been controversial,” said Gundlach. “What’s been controversial and difficult is ‘what do we do to replace the revenue that’s lost in the education budget?‘”“The education budget is in good condition, and we want to be very mindful of how we pass tax exemptions, tax credits, tax cuts, but we are comfortable that this will not impact the education budget,” he said. Even if the state grocery tax decreases, local governments can still impose their own grocery taxes, but Garrett is also sponsoring a companion bill that would make it easier for them to decrease their sales taxes, too.Alabama pharmacy owners discuss impact of PBM reform legislation
WFSA Alabama Taxes Montgomery Groceries Grocery Tax Representative Danny Garrett Carol Gundlach
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