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Education Trust Fund

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"Alabama Shoppers Rejoice as Grocery Tax Reduction Takes Effect"
taxation2 years ago

"Alabama Shoppers Rejoice as Grocery Tax Reduction Takes Effect"

Alabama's law reducing the state tax on groceries from 4% to 3% has gone into effect, providing savings for shoppers. The reduction applies to SNAP-eligible foods, excluding alcohol, tobacco, and hot-prepared foods. Another 1% reduction is planned for next September if the Education Trust Fund budget grows by 3.5%. Lawmakers have formed a task force to study the impact of the tax reduction on the fund. Local cities and counties' food taxes remain in effect but cannot be raised higher than current levels.