Education budget chair files bill to phase out sales tax on foods

The chairman of the education budget committee in the Alabama Senate has introduced a bill to gradually repeal the 4 percent state sales tax on basic foods such as bread, milk, eggs, cheese, infant formula, and fresh fruit and vegetables.he planned to bring the bill, filed it on Wednesday. Lawmakers have introduced bills to repeal the sales tax on food for decades without success. But Orr’s bill could add momentum to what appears to be bipartisan support for the idea this year. Rep.

Some previous proposals would have repealed the state sales tax on all foods, including soft drinks and snacks. Orr said that would reduce the ETF by more than $600 million a year. Still, legislators have said the surge in revenues, fueled by inflation and billions in federal dollars for pandemic relief, will not last. Orr’s bill includes safeguards intended to soften any loss in revenue to the ETF when revenues level off or decline.

More than half of the sales tax most people pay on their food comes from the city and county portion of the sales tax. Orr’s bill would not change those. But it would prevent cities and counties from raising their sales taxes on the WIC-defined list of foods.

I’m glad there is discussion about reduce tax on groceries, but this proposal is weak. Food tax should be eliminated!

How does a grocery store charge tax on only certain items?

Please stop calling this an elimination of the grocery tax. It is not! The tax is only been removed on a few items.

Your going to pay one way or another. Florida and Louisiana both have no grocery tax but property tax is four times more than Alabama. My property tax in New Orleans was over $4,000 a year.

So the guy who has so poorly managed the Education Trust Fund is now going to fund a reduction in grocery taxes with the surplus? Long overdue! Alabama Libertarians deserve a piece of the credit for pushing this change during the last election. ALReporter LP_Alabama whnt

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