Alabama House passes grocery tax cut bill
MONTGOMERY, Ala. (WIAT) — A slate of tax cut bills passed in the Alabama House on Tuesday, and Republicans and Democrats are supporting it.
A trip down the aisle at your local grocery store could become less expensive. One bill would slash the grocery tax from 3% to 2%. State Rep. Danny Garrett (R-Trussville) said it won't jeopardize funding for education, which is where the tax goes.
'We're trying to do some things we can do and at the same time, be responsible in our budgeting because we've been on a sugar high with revenue,' Garrett said. 'Revenue's kind of flattened, but we've budgeted for that.'
Garrett said most states don't tax groceries, and that is a good step in the right direction.
'We're making investments in public education: Numeracy Act, Literacy Act,' Garrett said. 'We were the only state to show improvement in the last nation's scorecard. So I think all of these things work hand in hand, and we believe this is a sustainable tax cut.'
Democrats agreed. State Rep. Mary Moore (D-Birmingham) said it will help curb prices in the middle of President Donald Trump's trade war.
'Foods that come from other countries, like Mexico. Food that's coming from Canada and other place that we rely on,' Moore said. 'So this will be some relief.'
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Another bill increases the amount of retirement income that can be tax-exempt. It doubles that amount from $6,000 to $12,000. State Rep. Curtis Travis (D-Tuscaloosa) said these bills don't go far enough.
'You know, let's help 'em out,' Travis said. 'Let's keep giving relief to the working people in the state of Alabama. So this grocery tax is fine, the individual income tax — that's good. But again, just what can we continue to do?'
State Rep. Jamie Kiel (R-Russellville) said he's for these bills.
'I think that anytime you tax people on things that are essential for them to live, anytime you can give that money back to the people, I think it's important that we do that,' Kiel said.
The bill heads to the Alabama Senate for a committee vote.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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