MONTGOMERY, Ala. — A proposal to eliminate Alabama’s state sales tax on groceries is once again being pushed by lawmakers who say it would help ease the cost of living for families across the state.
House Bill 336 would remove the state’s 2% sales tax on food beginning September 1, 2026, fully exempting groceries from the state portion of the sales and use tax.
Currently, food in Alabama is taxed at a reduced rate compared to the general 4% sales tax. Under the proposal, counties and municipalities would still be allowed to tax groceries but would have the option to pass local ordinances or resolutions to reduce or eliminate their own taxes on food…