Alabama Lt. Gov. Will Ainsworth is using the spike in egg prices to continue his fight to eliminate the state’s sales tax on groceries.
In 2023, Ainsworth made a successful pitch to lawmakers to reduce the tax from 4% to 3% by supporting legislation he, at that time, lauded as a “bold first step” toward the ultimate goal of cutting the grocery tax entirely.
This year, the sponsor of the 2023 grocery tax cut legislation, State Rep. Danny Garrett (R-Trussville) has introduced a legislative package that would cut the state’s tax on groceries another 1%.
“With bird flu raising the cost of large eggs to $5.00 a dozen – an all-time high – it’s time to continue removing the sales tax on groceries and provide needed relief to Alabama families, Ainsworth said on Tuesday. “Alabamians can save $150 million if the Legislature follows Trump’s lead and cuts taxes NOW.”
Currently, the average price for a dozen eggs is $6.12 in Alabama, which is the third highest in the country.
The 2023 grocery tax cut legislation included a provision for a further reduction to 2%, contingent upon a 3.5% growth in the state’s Education Trust Fund revenues in the preceding fiscal year.
However, as of September 1, 2024, this growth threshold had not been met, leaving the grocery tax at 3%.
Ainsworth has long been an advocate for getting rid of the tax on groceries, arguing in 2023 that the Legislature’s job was only “half complete.” At that time, Ainsworth pushed for a greater grocery tax cut, but his idea was notably at odds with Governor Kay Ivey’s proposed $800 direct taxpayer rebates to working families — which ultimately became $300.
RELATED: Ainsworth: ‘I support tax cuts over rebates’ (2023)
“We must eliminate the second half of the grocery tax,” Ainsworth said in an op-ed, “and a legislative study group we empaneled is already running the numbers, making plans, and putting together a blueprint to accomplish that goal.”
Alabama Republican Chairman John Wahl, who was instrumental in getting the tax cut package introduced this year, said he believes the legislation will pass before the end of the 2025 session.
“I’m very optimistic that we’re going to get this across the finish line,” Wahl said Monday on WVNN. “So we have surpluses. We have an opportunity. There’s something that’s going to be done with this money. And I think this is the package of bills that deserves to get attention.”
Yaffee is a contributing writer to Yellowhammer News and hosts “The Yaffee Program” weekdays 9-11 a.m. on WVNN. You can follow him on Twitter @Yaffee
