Which food qualifies for Alabama’s grocery Tax cut?
Prepared foods may not apply for the tax cut
CHATTANOOGA (WDEF) – Alabama is cutting the sales tax on food this September.
But what “foods” actually qualify?
Unlike Tennessee, Alabama is cutting the food tax from 4% to 3%.
However, it doesn’t apply to everything you buy at the grocery.
The tax cuts applies to fruits, vegetables, meat, dairy products, breads or cereals.
But it gets tricky when those foods are pre-cooked.
For example, a package of uncooked chicken breast will get the discount at 3%. But a rotisserie chicken still is taxed at 4% as a “heated food.”
Just like in Tennessee, the sale tax cut does not apply to alcohol, tobacco, vitamins, medicines and supplements.
The Tennessee law is a tax holiday that lasts through Halloween.
The Alabama law is just a tax cut, but it does not expire.
So how do you know what items on your grocery bill actually got the lower tax rate?
WHNT-TV in Huntsville found that at Walmart, they print an “F” after items with the lower 3% rate.