Alabama grocery tax

A statewide, member-led nonprofit organization advancing public policies to improve the lives of Alabamians who are marginalized by poverty is recommending a plan of action for local lawmakers. The 2025 roadmap for change in Alabama from Alabama Arise has expanding Medicaid and ending the state sales tax on groceries as top goals on the legislative agenda.

September starts this Sunday. One difference Alabama shoppers will see is no extra cut in the State’s sales tax on groceries. The Department of Revenue in Montgomery says the tax on food will stay at three percent starting September first.

Advocacy groups in Alabama are urging the public to contact local lawmakers over the continuation of the state sales tax on groceries. This is due to the law having a stipulation that Alabama’s education revenue must increase to offset losses for the deduction to be activated.

Alabama residents soon will begin receiving one-time tax rebates of up to $300 per couple. The Alabama Department of Revenue will start issuing the payments on Friday by direct deposit or paper check, depending on how residents received their 2021 tax refund.

An Alabama nonprofit has unveiled an agenda calling for policy changes in the state. Alabama Arise works to improve the lives of Alabamians who are marginalized by poverty. The organization’s 2024 Roadmap for Change contains seven legislative changes that its policy workers will focus on next year.

Alabama families are paying slightly less at the grocery store after a 1% reduction in the state sales tax on food took effect this month. State lawmakers in June approved legislation to gradually remove half of the 4% state sales tax on food, capping decades of fruitless attempts at such a tax cut.

A new law aimed at helping save money for shoppers across Alabama takes a step forward. Governor Kay Ivey signed legislation into law back in June that cuts the statewide 4% grocery tax in half. The legislation will reduce the tax to 3% on Sept. 1, 2023, and aims to reduce to 2% on Sept. 1, 2024.

Legislation to reduce Alabama’s sales tax on food will reduce the state’s 4% tax on groceries to 3% on Sept. 1. The tax will then drop to 2% on Sept. 1, 2024, but only if tax collections to the Education Trust Fund rise at least 3.5% to offset the loss.

The legislation will reduce the tax on groceries in Alabama to 3% on Sept. 1, 2023, and aims to reduce to 2% on Sept. 1, 2024.

The Alabama Senate voted thirty one to zero to cut the State’s sales tax on groceries from 4% down to 2%. The measure now goes to Governor Kay Ivey after the Alabama House agreed to a change by the Senate.