Dial bill would remove Alabama sales tax on food

MGN Online
MGN Online

MONTGOMERY, Ala. (AP) – 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 Sen. 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 percent 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.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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