HUNTSVILLE, Ala. (WAFF) – Alabama lawmakers are pushing to make everyday life more affordable with a bill that would bring a grocery tax holiday to residents and allow tax deductions to overtime pay.<\/p>\n
House Bill 527 (HB527) passed unanimously in the House, but the Senate has only three working days left before the session ends to vote on the measure. State representatives told WAFF 48 they are confident the bill will pass in time.<\/p>\n
Alabama is one of only 11 states in the country with a grocery tax. The state is trending toward eliminating the tax entirely, already going from 4 percent to 2 percent since 2023.<\/p>\n
If the bill becomes law, the grocery tax will disappear for two months (May 1 – June 30) for each year through 2028. <\/p>\n
The tax holiday would not be mandatory throughout the state. It is up to each county and city to decide on their own.<\/p>\n
Sarah Mayers, a local shopper, said she would welcome the change.<\/p>\n
\u201cI feel like the price of groceries goes up all the time randomly, and we\u2019re like, \u2018Oh look, the price of eggs is like seven dollars now,\u2019\u201d Mayers said. \u201cAnd to come in and actually have my bill be less would be awesome, even if it was just by a little bit.<\/p>\n
The average family of four in Alabama spends a little over $1,000 a month on groceries, according to USDA. Over the two-month span without the grocery tax, an average family could save around $40. Many others could save more.<\/p>\n
The bill also allows hourly employees to deduct taxes from up to a thousand dollars of their overtime pay. The tax deductions on overtime pay would expire at the end of 2028.<\/p>\n
Altogether, the tax cut would result in an $83.4 million loss to the state\u2019s Education Trust Fund.<\/p>\n
The bill\u2019s sponsor, Rep. James Lomax (R-Huntsville), says the measure addresses affordability concerns.<\/p>\n
\u201cGas prices are surging and people are concerned about affordability, whether it\u2019s housing or other things throughout the state. Each and every dollar matters at the end of the day,\u201d Lomax said. \u201cI think it\u2019s going to matter to the people in District 20, the City of Huntsville and the state of Alabama.\u201d<\/p>\n
State representative and Minority House Leader Anthony Daniel (D-Huntsville) says the grocery tax holiday would be better from June through July, when kids are out of school.<\/p>\n
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