Alabama Considers Ending Sales Tax on Food Amid Rising Grocery Prices

1 min read
Source: Fox Business
Alabama Considers Ending Sales Tax on Food Amid Rising Grocery Prices
Photo: Fox Business
TL;DR Summary

Lawmakers in Alabama are considering removing or phasing out the state's 4% sales tax on food, which is one of only three states that tax groceries at the same rate as other purchases. The average Alabama family spends $600 a year on the state grocery tax, and removing it would be a lasting benefit to low-income families struggling to make ends meet. However, past proposals have been stalled due to the projected blow to education funding, as the tax on groceries provides more than $600 million annually to schools.

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