Alabama Passes Food and Essentials Sales Tax Cuts

The Alabama Legislature has unanimously passed bills to reduce the state sales tax on groceries from 3% to 2% starting September 1, and to exempt period products, diapers, baby formula, and maternity clothing from the 4% state sales tax for three years. Both measures await Governor Kay Ivey's signature and are intended to ease financial burdens on families by making basic necessities more affordable. The grocery tax cut is expected to cost the state about $121 million annually, while the new exemptions will reduce revenue by $13 million per year, with both affecting the Education Trust Fund. Local governments may choose to implement similar exemptions at the municipal level. Alabama joins 29 other states in exempting period products from sales tax, which advocates describe as a step toward ending 'unnecessary taxes' on essential items. The legislation enjoys broad bipartisan support and is part of ongoing efforts to reduce taxes on essential goods.