Alabama Legislature Passes Historic Grocery Tax Cut

Alabama state lawmakers have passed a bill to cut grocery tax from 4% to 3%, effective from September 1. The full sales tax rates for cities and counties and special taxing districts remain and are not cut as part of this legislation. The typical Alabama family will save $150 per year in groceries under the 1 percentage point reduction in the sales tax. The legislation uses the same definition of food as the federal Supplemental Nutrition Assistance Program, or SNAP. Prepared foods often found in the deli of a grocery store like rotisserie chicken, salads and sandwiches, beer, wine and other adult beverages would not apply.