Senate Considers Lowering Sales Tax on Groceries, Increasing Taxes on Other Purchases

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By Alabama News Network

A state Senate committee is scheduled to consider a bill that would phase out the state sales tax on groceries and increase the sales tax on other purchases.

 

The Senate Finance and Taxation-Education Committee is planning a public hearing Wednesday in Montgomery on the bill by Republican Senator Gerald Dial of Lineville.

 

Dial's bill would phase out the 4 percent sales tax on groceries over four years. His bill would replace the $300 million in revenue by gradually increasing the state sales tax on all other purchases from 4 to 5 percent.

 

Legislators have introduced bills in the past to remove the state sales tax on food, but none has passed because of disagreements about how to replace the lost state revenue.

 



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