Some mayors and officials believe there could be political pressure to lower their local sales taxes on groceries if Alabama state lawmakers vote to cut out the state portion. The impact, some officials say, could be devastating to their budgets.
, allows municipal and county governments to lower their sales tax rates on groceries, but does not grant them authority to increase them.
Under one consideration for the state cut is to replenish revenue losses through an elimination of the state’s income tax deduction for federal income tax. “They will hear ‘cut on groceries,’ but the average Alabamian, I’m not confident, realizes most of the sales tax is at the city and county ,” he said. “Most cities and counties would not cut their taxes. They really don’t have a lot of options for local revenue past sales taxes.”
Supporters of the tax cut on the state level are skeptical that much will happen by local governments. Tuscaloosa Mayor Walt Maddox, who was the Democratic nominee for governor in 2018 and who ran on a platform of removing the sales tax on groceries, said that his city is prepared to make a local cut if legislation advances.,” the city’s portion of the sales tax on groceries was slated to be removed. But he said the city was never granted legislative authority to proceed with the tax cut, so the city instead cut its environmental services fees .
“We were trying to figure out a way to help everyone as much as we could,” said Clay Mayor Charles Webster, referring to a tax cut OK’d before Christmas. “We came up with this because it will pretty much help everyone. Everyone has to eat.” Webster admits that local officials in other parts of Alabama have contacted his city asking what they were doing.
“What we have on the table now is not just a grocery tax but a number of other things,” said Garrett. “When you’re last place in tax collections and we want to be a low tax state, if you go lower and lower, how will we be able to provide ?”A long line of people watch for gas for over an hour at the Elberta Farmer's Co-op. Hurricane Sally damage to Baldwin County September 17, 2020. .
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