Joey Jones: senior in business, pays for his groceries at a self-checkout station. A new bill in the Legislature to remove sales tax from grocery purchases could go to Alabama citizens for a vote as soon as November 2008. Kyle Cooper / ASSISTANT PHOTO EDITOR
A new bill in the state Legislature could remove sales taxes from grocery items.
If the proposed bill passes the Legislature, it must then be approved by the citizens in a referendum vote.
Sen. Ted Little, D-Lee, Russell and Tallapoosa, said if the bill is going to be approved by the Legislature this year, it must pass by the end of session on May 16.
The Legislature could pass the bill just so it could be brought to a vote.
“With bills of this nature, the Legislature will pass it to get the word of the voters,” Little said.
Legislative approval does not guarantee the success of this bill. Only if the citizens of Alabama vote to approve it, then the state constitution will be amended.
Little said if the bill is approved by the voters, it could go into effect as early as 2009. He said the merchants would have to be given time to adjust computer registers and to have the time to determine what goods will be considered “grocery items.”
Little said the Legislature would probably not have anything to do with that process.
“I suspect the Department of Revenue would make the bulk of those decisions,” Little said.
He added the department would probably contact another state, like Georgia that already has a similar plan in place.
The plan doesn’t come without a price, however.
Little said removing the sales tax from grocery items would cost the education trust fund approximately $245 million per year because sales tax revenue is bookmarked for the fund.
To regain the lost funds, Alabama citizens will no longer be able to deduct their federal or FICA taxes from state income tax returns.
“If you’re going to eliminate sales tax, you’ve got to recoup that money,” Little said.
Waudell Tucker, a freshman in history, said he doesn’t think the bill is a good idea because it would take money away from pell grants and financial aid.
“Paying (sales) tax isn’t that much,” Tucker said. “It would cause more problems than it would solve.”
Karen Blanks, a senior in secondary education, said she thinks the sales tax removal is a good idea from a tax-payer’s standpoint.
“I think it’s a good bill because the people who will save the most will be low income families who need the break,” Blanks said.
Little said he thinks the bill has good merit, but said it may not pass this year or next, saying the bill could be held back until the economy stabilizes.
