The state sales tax on food would drop from 3% to 2% under a bill passed Tuesday by the Alabama House of Representatives.
The tax cut will take effect Sept. 1 if the bill passes the Senate and is signed into law by Gov. Kay Ivey.
It follows up on a bill passed in 2023 that cut the tax from 4% to 3%.
The reduction from 3% to 2% would save taxpayers an estimated $122 million a year.
The bill, by Rep. Danny Garrett, R-Trussville, is one of several tax cut bills on the House calendar today.
The initial move to cut the tax on food two years ago came after years of efforts by Democratic lawmakers and advocates, including Alabama Arise, to reduce the tax. They argued that it was unfair to tax food, a necessity, and that Alabama was one of only a few states that collected its full sales tax on food.
The bill passed today by a vote of 103-0. It moves to the Senate.
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