Several Alabama Arise staff members participated in Gov. Kay Ivey’s bill signing ceremony for HB 386 on July 31, 2025, at the State Capitol in Montgomery. HB 386 will reduce the state sales tax on groceries from 3% to 2% starting Sept. 1, 2025. Left to right: Arise legislative director David Stout; Sen. Andrew Jones, R-Centre; Gov. Kay Ivey; Arise hunger policy advocate LaTrell Clifford Wood and Arise communications director Chris Sanders. (Photo by Matt Okarmus)
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HB 386, sponsored by Rep. Danny Garrett, R-Trussville, will reduce the state sales tax on groceries from 3% to 2% beginning on Sept. 1. The law also will give cities and counties more flexibility to reduce local grocery taxes if they choose. The grocery tax reduction will be Alabama’s second in three years, building on a 2023 law reducing the tax from 4% to 3%.
“Reducing the grocery tax is especially critical in this time of persistently high food prices,” Alabama Arise executive director Robyn Hyden said. “The grocery tax drives many families deeper into poverty, and Alabama Arise remains committed to the goal of eliminating it entirely.”
Learn more and see pictures by checking out our news release.
Untaxing groceries has been one of Arise members’ top advocacy priorities for decades. The grocery tax is a major driver of the state’s upside-down tax system, which forces Alabamians with low and moderate incomes to pay a higher share of their incomes in state and local taxes than the wealthiest households. Hyden said she was thankful for the years of work that current and former lawmakers put in to make the recent grocery tax reductions possible.
“Arise appreciates Rep. Danny Garrett and Sens. Andrew Jones and Arthur Orr for guiding HB 386 through the Legislature, and Gov. Kay Ivey for signing it,” she said. “We’re thankful for the unanimous legislative support on the bill this year. And we’re grateful for former Rep. John Knight, former Sen. Hank Sanders, Sen. Merika Coleman, Reps. Laura Hall, Penni McClammy and Mary Moore, and so many other legislators whose determined work over so many years laid the groundwork for this progress.”
Read our news release here. |
