Birmingham, Ala. – Today (January 24th, 2022) the Alabama Policy Institute (API) announced the addition of HB174, a bill sponsored by Rep. Mike Holmes (R-Wetumpka) that would exempt food from state sales and use taxes, to its legislative scorecard.
“Groceries are exempt from state sales taxes in most of the country, with only thirteen states taxing groceries at all,” API President & CEO Caleb Crosby said. “Out of the thirteen states that do tax groceries, only Alabama, Mississippi, and South Dakota tax them at the full amount without any credit or rebate.”
“With state budgets hitting record high after record high, it is past time for Alabama to end this tax,” Crosby continued. “The fact is that Montgomery is flush with cash. State leaders need not pretend that the sales tax on our bread and milk is essential.”
“It is time to pursue this matter without the old fallback of raising taxes elsewhere,” API Chief Policy Officer and former state senator Phil Williams said. “This should be a matter of giving back, not amending to avoid a true tax cut.”
HB174, a bipartisan bill with over a dozen cosponsors, will be considered a ‘Yes’ vote on this year’s legislative scorecard, the API Watchlist. More information about the API Watchlist is available here.
For questions or comments, email communications@alabamapolicy.
The Alabama Policy Institute (API) has a thirty-year award-winning record of research and conservative advocacy on issues of public policy. Alumni of the Board of Directors and former API staff have served, or are serving, at all levels and in every branch of state and federal government.