MONTGOMERY, Ala. (WIAT) — Dozens gathered at the statehouse Tuesday calling for a repeal of Alabama’s grocery tax.
Advocates say removing the four percent state tax on food could save a family of four up to $600 a year. Senator Merika Coleman says she will be filing a bill in the coming days to repeal that tax. The revenue brings in about $500 million to the state’s education budget annually.
To offset that loss, she is proposing Alabama get rid of its state income tax deduction to federal income tax payments.
“It’s an unfair tax break that disproportionately lowers taxes for the wealthiest people. The FIT tax break costs the ETF more than $900 million a year. By eliminating the federal tax deduction, Alabama could afford to end the sales tax on groceries while protecting school funding,” Sen. Merika Coleman said.
Other state leaders have called for repeal of the grocery tax this session too, including Lt. Gov. Will Ainsworth. He’s said he doesn’t think there will be lost revenue if this tax is eliminated, considering the state’s growth and budget surpluses.