House Passes Bill to Cut Sales Tax on Food

Megan Reardon

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Posted by: MReardon
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Date: May 27 2023 10:05 PM

This past Thursday, the Alabama House of Representatives approved a bill (HB479) to cut the state's sales tax on food from 4% to 3% later this year partly due to inflation. In 2025, it could possibly drop to 2%.

If it becomes a law, the tax decrease is expected to save the state's taxpayers about $300 million a year according to AL.com.

The bill passed by a vote of 103-0.

Lawmakers have proposed bills similar to this in the past, but none have ever passed due to concerns it would impact funds in education.

Alabama is one of only three states that does not already provide reduced taxes on food. 

All of this depends on whether or not there is enough growth in tax collections to make up for the revenue loss. 

This bill could possibly help every person in Alabama save money each time they shop for groceries.

It will next move to the Senate, and support is expected to be strong. 

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