Governor Ivey Signs Alabama Grocery Sales Tax Reduction Bill

Governor Ivey has signed HB 479 to reduce the state sales tax rate on eligible food products. The state tax rate will be reduced to 3% on September 1, 2023. If certain revenue requirements are met, the rate will be reduced to 2% on September 1, 2024. Food eligible for the reduced rate will be the same products that qualify for the federal Supplemental Nutrition Assistance Program. Additionally, counties and municipal governing bodies may reduce their local sales tax rate on eligible food products in defined increments on October 1 of each year when they meet certain revenue requirements. The bill text may be found here.