Dial Bill Would Remove Ala, Sales Tax on Food

By: The Associated Press
By: The Associated Press

MONTGOMERY, Ala. (AP) -- For the 22nd year, Alabama legislators are discussing whether to remove the state sales tax on groceries.

The Senate Finance and Taxation-Education Committee held a public hearing Wednesday on a bill that would phase out the state's 4 percent sales tax on groceries. It would increase the tax on other purchases to 5 percent to make up the lost revenue.

The bill's sponsor, Republican Sen. Gerald Dial of Lineville, says he's optimistic the committee will approve his bill next week and send it to the Senate. Dial got the same bill approved by the committee last year and then it died in the Senate.

Dial says he and others have been introducing bills to remove the state sales tax on groceries every year since 1992.

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