AL Political Reporter: “Daily, grocers witness hardworking Alabamians unable to purchase the food that they need. Despite wages increasing significantly over the last several years, the rising cost of food has outpaced all other household expenses except transportation. Factors including the labor shortage, supply chain disruptions, energy prices, severe weather events, and the war in Ukraine have all contributed to these rising prices. Most recently, the avian flu has caused havoc in the egg and poultry industry.
Alabama is one of only three states in the nation that does not reduce the sales tax on food, and two of our bordering states, Florida and Georgia, do not tax groceries. Across the state if you add in the city and county tax, food tax averages between 9-11%. This is a regressive tax, which disproportionately affects those with lower income. We know that states with the highest grocery tax rates also tend to be the states with the highest rate of food insecurity.
The average family of four spends $1,000 per month on food at minimum. Cutting the 4% state grocery tax would give each family an extra $40 per month or $480 per year. That is significant. It could mean the difference between having to choose between your prescription co-pay and enough food to feed your family.”