HUNTSVILLE, Ala. —
Alabama is one of only three states (alongside Mississippi and South Dakota) in the U.S. that still tax groceries without any discount or rebate.
According to Avalara, States like Hawaii, Idaho, Kansas, and Oklahoma offer credits or rebates for groceries. The remaining states exempt groceries or tax them at a reduced rates.
Multiple bills are on the table for discussion.
Senate bill 144 would exempt all sales of food from state tax starting October of this year.
House bill 131 takes a more gradual approach and would phase out sales tax on groceries over the next 20 years.
We asked some folks in Huntsville what they’d think about tax-free groceries.
Huntsville's Barry Blake tells our reporter, “It wouldn’t hurt me a bit. Although I have to admit, I am a veteran, so I don’t pay a lot.”
Becky Hicks in Huntsville says, “I mean, if it’s going to help schools or children, I think we need them. But if it’s not for anything like that, they could get away with them.”
These types of bills have been proposed many times before.
So, they could be tough to pass.
Alabama’s sales tax on groceries brings in about $400 million every year. And it goes toward the state's education budget.