Alabama grocery tax cut starts Sept. 1, here’s what you need to know

HUNTSVILLE, Ala. (WAFF) - Starting on September 1, the current 4 percent Alabama grocery tax will decrease to 3 percent thanks to new legislation that was passed this year.

Carol Gundlach with Alabama Arise said her organization has been fighting to eliminate the tax for 20 years and this is a step in the right direction.

“We are so excited, not particularly about the 1 percent cut because it’s not going to be a lot of money, but because it’s a break in the dam,” Gundlach said.

The grocery tax in Alabama goes directly into the State’s Education Trust Fund. There is a chance that the grocery tax will drop another 1 percent next September if the education trust fund grows by at least 3.5 percent.

State Representative Danny Garrett who sponsored the bill to cut the tax said while some may think the percentage is small, its a big change for the state of Alabama.

“It’s the largest tax cut we’ve ever had in the history of Alabama so it’s pretty significant,” said Rep. Garrett.

Lawmakers used food outlined in the SNAP program to decide what items are eligible to be taxed at the lower rate.

Those include:

  • Fruits and vegetables
  • Meat, poultry, and fish
  • Dairy products
  • Breads and cereals
  • Snacks
  • Non-alcoholic beverages
  • Seeds and plants, which produce food for the household to eat.

Many shoppers at Star Market did not know anything about the grocery tax cut while others we’re glad to hear about it.

“I’m pretty excited, finally something is going down,” said Cindy Scott.

Some said state lawmakers should do away with the tax entirely.

“It is a tax that impact everyone including low income people,” said Angela Arnold. “Food is necessary for people and I think it would be a good thing if it were just gone all together.”

“I feel great about it,” said Shawn Suggs. “I’m not greatly financially stable myself so this would be pretty good, I mean it’s less money I have to pay.”

Leaders with Alabama Arise said the average Alabama family will save around $150 a year with the new tax cut.

Click Here to Subscribe on YouTube: Watch the latest WAFF 48 news, sports & weather videos on our YouTube channel!

Claudia Peppenhorst

Claudia Peppenhorst

Claudia Peppenhorst is an Alabama native and joined the WAFF News team as an MMJ/Reporter in January 2023. She attended Troy University where she was the student news director at TROY TrojanVision News. She is excited to serve the Tennesee Valley, bringing you the latest stories.