Once the new law is fully implemented, many families will have hundreds of dollars more available each year to spend on food or other expenses.
For decades, Alabama Arise has focused on reducing and ultimately eliminating the state sales tax on groceries, which essentially taxes survival. At the beginning of the 2023 legislative session, Alabama stood as one of only three states with no tax break on groceries. Thanks to determined advocacy by Arise members and other advocates, our state is off that shameful list at last.Arise collaborated this year with many partners and lawmakers to introduce and pass the grocery tax reduction.
When this year’s session began, many Alabamians were struggling with inflation and higher costs for essentials like eggs and bread. Simultaneously, the state was witnessing strong revenue growth. As elected officials began talking about one-time tax rebates, advocates recognized an opportune moment to make permanent progress on reducing the state grocery tax. And the revenue growth ensured this reduction would not cause severe harm to funding for our children’s public schools.
Reducing the state grocery tax is a step in the right direction for tax justice. This penny saved is symbolic of a better future being paved for Alabama.Arise will continue advocating to eliminate the state grocery tax while protecting Education Trust Fund revenues. We look forward to working with the new Joint Study Commission on Grocery Taxation to find a sustainable path forward.
Cheers to eliminating the first cent, and to the ongoing journey toward a more prosperous and equitable Alabama!
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