Alabama House committee advances bill to cut half of state’s 4% sales tax on groceries

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Alabama House committee advances bill to cut half of state’s 4% sales tax on groceries
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The House Ways and Means Education Committee approved the tax cut as part of an appropriations package that also included a nearly $9 billion education trust fund budget, the creation of a new state savings account and a one-time rebate of $210 per person.

MONTGOMERY, Ala. — Alabama lawmakers on Wednesday advanced legislation to remove half of the state’s 4% sale tax on food, a proposal that has garnered wide bipartisan support among lawmakers this year.

Almost every member of the Alabama Legislature is in support of the proposal. All 35 state senators and 100 of the 105 representatives haveBut some groups, including the organization that lobbies for teachers and public school employees, expressed concern about a loss of revenue for the state education budget.

“AEA is not against cutting grocery taxes, but we are against cutting grocery taxes without an equally reliable funding source to replenish the lost revenue,” King said. King said while Alabama is one of the few states to fully tax groceries, most other states have higher property taxes or other revenue sources to fund education.

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