Alabama Gov. Kay Ivey on Thursday signed legislation to reduce Alabama’s sales tax on groceries.
The tax cut will decrease the state’s 4% tax on groceries to 3% on Sept. 1, 2023.
The news is greatly celebrated by State Representative Penni McClammy of District 76 who credits former legislator John Knight and her father the late Thad McClammy.
McClammy credits Alabama Arise with helping the legislation stay in the forefront. The tax will drop to 2% on Sept. 1, 2024, but only if tax collections to the Education Trust Fund rise at least 3.5% to offset the loss.
Alabama is one of only three states that tax groceries at the same rate as other purchases.