Alabama grocery tax holiday to end July 1

FILE – People buy groceries at a Walmart Supercenter, July 11, 2024. (AP Photo/Eduardo Munoz Alvarez)

MONTGOMERY, Ala. (WAKA) – Shopping for groceries? You’ll want to make your purchases before July 1, when Alabama’s grocery tax holiday ends.

Earlier this year, Gov. Kay Ivey signed a bill to remove the state’s 2% tax on groceries for the months of May and June. That savings ends July 1.

“When we can cut taxes in Alabama and provide some relief to the hardworking people of this state, I am all for it,” Gov. Kay Ivey said when signing the bill. “With the Legislature, we have worked to pull back the state’s portion of the grocery tax over the last few years. This two-month holiday on the state grocery tax will provide direct relief, and I am grateful to Rep. James Lomax (R-Huntsville) and Sen. Arthur Orr (R-Decatur) for sponsoring the legislation to make that possible.”

The sales tax holiday on groceries didn’t apply to local taxes, just the state tax.

In recent years, the Alabama Legislature has reduced the state’s sales tax on groceries from 4% to 2%. Some want that cut to 0% permanently.

“Two months is a good start toward forever,” Alabama Arise Executive Director Robyn Hyden said.  “The grocery tax is a cruel tax on survival. It drives many families deeper into poverty, and Alabama Arise remains committed to the goal of eliminating it entirely. Arise members from every corner of our state have advocated tirelessly for decades for Alabama to untax groceries. And our work will continue until the state grocery tax is a thing of the past.”

Hyden says Alabama remains one of nine states taxing groceries.

“As we work to untax groceries, we also must protect funding for our children’s education. Lawmakers should work together to end the state grocery tax sustainably and responsibly without harming Education Trust Fund revenues,” she said.