BIRMINGHAM, Ala. (WIAT) – The newly reduced grocery tax went into effect Friday, dropping from 4% to 3%, but this change was not without its challenges.
Walmart says there was a mistake in its system Friday charging customers the old 4% grocery tax on top of the new 3% tax. The company says some stores fixed this but others are still working on it, hoping to have all stores fixed by Friday night.
Walmart put out a statement addressing the double taxing, saying:
“Earlier today, some Walmart customers and Sam’s Club members across Alabama were incorrectly overcharged sales tax while shopping with us. Effective Sept. 1, the sales tax rate on food decreased by one percentage point statewide. Our systems mistakenly charged both the old rate and the new rate at the time of sale. The situation is being corrected and we’re asking customers who used cash while shopping with us today to check their receipts. If two separate sales tax amounts appear on the receipt, customers should bring it their local Walmart store or Sam’s Club and speak with a member of management to get a refund for the higher of the two taxes. Customers who used credit cards and other forms of payment will receive a notification their refunds were automatically applied.”
The Better Business Bureau (BBB) of Central Alabama says no complaints were filed Friday regarding the taxing issue most likely due to the company catching the glitch and offering refunds quickly.
“It was probably something that happened just early in the morning and as soon as it was discovered any store would, you know there’s no benefit to them, so they want to get it corrected as quickly as possible,” says Carl Bates, president of the BBB of Central Alabama.
State lawmakers say this one percent decrease in the grocery tax is the biggest tax reduction in state history.
“People of Alabama will benefit by being able to put more money in their pocket, spend more money in their communities,” says state Speaker of the House Nathaniel Ledbetter. “We certainly hope that we continue along that track to remove the grocery tax.”
While many are glad the tax is going down, some people still question why Alabama has a grocery tax to begin with.
“Actually was something new to me not that long ago that I really didn’t know about. I know the prices of groceries have been going up though,” Birmingham resident Michael Hinkle said. “I’d like to see not getting taxed for groceries at all, that would make plenty of sense.”
“It’s hard not to eat fast food every day when you can’t get fresh groceries at a decent price,” says Arrington Harper, Birmingham resident. “Any money that you can save to eat a little bit healthier will be a good thing.”
Some people say while a one percent saving won’t pad the bank account immensely, it could be the difference between buying groceries or getting fast food.
