If you have been to the grocery store since July 1st, you may have noticed that you paid more. Shoppers are again paying the state’s 2% sales tax on food. The temporary moratorium set by the legislature has expired.
The state says that the temporary suspension was intended to provide short-term financial relief for residents facing higher food prices.
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According to the U.S. Department of Agriculture, the average family of four spends around $1,000 a month on groceries. At 2%, the two-month state tax holiday saved most families about $40.
Alabama is now back to being one of only eight states that tax groceries. Hawaii, Idaho, Mississippi, and South Dakota tax it at the full state rate. Alabama’s 2% is one of four states that tax groceries at a reduced rate…