Alabama Governor Makes Moves to Remove Sales Tax on Groceries
The Revenue Commissioner reports the grocery tax brings in about $350 million to education.
Alabama Governor Robert Bentley is looking into getting rid of the state tax on groceries. The governor authorized the creation of a task force to explore repealing the grocery tax. The governor signed an Executive Order on Tuesday to create the Grocery Tax Task Force.
According to the Revenue Commissioner the grocery tax brings in about $350 million to education.
Governor Bentley said he hopes to repeal the tax without a replacement. However, this leaves some wondering, how those education funds will be replaced?
Alabama State Representative John Knight said, “This is the right thing to do – it is a tax break for working families of this state so they won’t have to pay sales tax on groceries, we give tax credits, we give tax exemptions each and every day. There’s no reason we can’t give a tax break to working families.”
Knight also said that the state would not miss out on the $350 million. He said that’s because, people would still pay sales tax on goods, which goes to the education fund.
By the way, thirty two other states do not tax groceries.
The study will deliver its recommendations to the governor by June 1, 2016.