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Alabama House Passes Plan to Remove Sales Tax on Groceries; Senate Approval Would Send Measure to Voters

  • Senate approval would send measure to November ballot
    By David White
    The Birmingham News, April 16, 2008
    Straight to the Source

MONTGOMERY - The state House of Representatives on Tuesday voted 63-38 to let state voters decide whether to overhaul Alabama's tax system, in part by taking the 4 percent state sales tax off groceries.

The plan also would lower state income taxes for many lower-income households but raise them on many upper-income households.

Rep. John Knight, D-Montgomery, the plan's sponsor, estimated that 80 percent of Alabama households would save money or break even under the plan, while 20 percent would pay more in taxes. "It's a great day for working families in this state," Knight told House members after the vote.

The plan would rewrite the state constitution, so at least 63 House members had to vote for it to send it to the Senate.

Full Story: http://www.al.com/news/birminghamnews/index.ssf?
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