The 2023 Alabama Legislative Session began last week. While there are many things The Community Journal would like to see accomplished this year, one of our main requests is to see the state sales tax on groceries repealed without increasing other taxes.
Lawmakers should enact legislation to permanently repeal the sales tax on groceries. Recent state revenue increases as well as federal stimulus funding could more than pay for lost grocery tax revenues, without establishing new taxes.
In the past, this has been a bipartisan issue with both Democrats and Republicans introducing legislation to repeal the grocery tax. Rep. Mike Holmes introduced House Bill 174 during the 2022 Regular Session. The bill would have fully repealed the grocery tax, without increasing other taxes. Holmes’ bill was never considered by the House Ways and Means Education committee, despite the ETF’s $1.2 billion revenue surplus to start 2022. With food prices continuing to rise, repealing the grocery tax as a way to give back to all Alabamians is a no-brainer.
Alabama is one of just three states that still fully taxes the sale of groceries and food-related items.
The 4 percent tax on groceries impacts all Alabama families, regardless of socioeconomic status, race, gender, etc.
The state is taking in more revenue than ever. Between revenue surpluses and the more than $4 billion in direct aid from the federal government, there is more than enough money available to eliminate the sales tax on groceries without negatively impacting the state’s Education Trust Fund.
Repealing the grocery tax should be an easy decision for Alabama lawmakers. Voters would get money back in their pockets and appreciate the tax cut. With Republicans leading the state, tax cuts and less government spending should be main focuses from our state government.
