By ALEXANDER WILLIS and ANNA BARRETT
MONTGOMERY, Ala. – With the 2023 legislative session in Alabama having come to a close last week, House members, reflecting on the dozens of bills passed this year, overwhelmingly named the state tax cut on groceries as the largest accomplishment for the year.
The conclusion to what has been a decades-long fight to reduce or eliminate state sales tax on food, the Alabama Legislature passed a bill June 1 that would gradually reduce state tax on groceries from 4% to 2% in what would amount to a $300 million annual tax cut when fully implemented. The tax cut bill was sponsored by Sen. Andrew Jones, R-Centre.
The tax cut will be implemented in two phases. The state tax on groceries will first be reduced from 4% to 3% on Sept 1, 2023, and then to 2% in September 2024, granted revenues for the state’s Education Trust Fund grow by at least 3.5%. If ETF revenues fail to grow by 3.5% in 2024, the final tax cut phase could happen in a subsequent year when ETF revenues meet the 3.5% growth threshold.
Perhaps the second most frequently named top accomplishment of the session was state income tax cut on overtime. Sponsored by Rep. Anthony Daniels, D-Huntsville, the bill garnered bi-partisan support, much like the grocery tax cut bill.
Alabama Daily News asked a number of House representatives what they thought the biggest accomplishment was of the session. Here’s what they had to say:
Rep. Tracy Estes, R-Winfield
“I’m really tickled to see the process beginning of repealing the state’s portion of the grocery tax, I think that’s important. Rebates, although we didn’t end up with the level I wanted to see those go out, I was still grateful we were able to do those. The baby boxes, anything we can do to help save lives or enhance the lives of those at home.”
Individuals and married couples filing jointly for 2022 will receive $150 and $300 income tax rebates later this year. Meanwhile, lawmakers expanded how people can safely and legally surrender infants.
I think Anthony Daniels’ bill might be one of the best bills of the session with the overtime bill… that really affects people in my district, I think that’s going to work out great and keep money back in people’s pockets which should really be our job. That will give them incentive to work a few more hours a week.”
Rep. Juandalynn Givan, D-Birmingham
“Biggest accomplishment was the food tax. For me, I’ve got to speak about my own bill, the body cam legislation was huge for us to be able to get that out, that’s something that’s talked about nationally all the time, so for us to be able to get it out here in this state, that was huge.”
The police body camera legislation sets up a process for who might be able to view law enforcement agencies’ video recordings.
“The overtime tax was huge… we had some pretty good pieces of bi-partisan legislation, but by far those were the biggest ones. The exhibition driving bill that we were able to get passed. Those to me were the most monumental bills of the session.”
Rep. Kyle South, R-Fayette
“We did a lot of good things budget-wise, I think the tax-relief bills that we had, I think those are the biggest accomplishments we can go back home and tell our constituents that we were down here working on their behalf.”
Rep. Curtis Travis, D-Tuscaloosa
“The (overtime tax exemption) bill was a big deal, but I also think the big part of this thing was the ability to work together.”
Rep. Patrick Sellers, D-Pleasant Grove
“I think the income tax on overtime, the grocery tax, those are the two big accomplishments that were bi-partisan that impact the people that we serve every single day.”
Rep. Donna Givens, R-Loxley
“The grocery tax is huge because that’s going to benefit everybody. I (also) feel like my baby bill, the Safe Haven baby box is just huge. You know, it’s saving lives, and that’s so important to me.
There’s just been so many good things that have passed. I’m (also) very supportive of the (trans athlete ban) bill.”
Rep. Chris Pringle, R-Mobile
“Job tax credits and always getting the budget done; our No. 1 priority is getting the budgets done. And I think we did a great job of appropriating the funds; we did our job, we dealt with some other major issues and are very proud.”
Rep. Prince Chestnut, D-Valley Grande
“I would say the financial literacy bill, that’s going to impact lives. Finance is everything in America, and so when young people learn the dos and don’ts about handling their money, they will make better decisions when they become adults.”
Rep. Neil Rafferty, D-Birmingham
“I think the transparency language and renewing the economic development packages is huge. The taxpayer deserves accountability and transparency, but they also deserve good jobs, well-paying jobs to afford them the opportunity to live, thrive and prosper right here at sweet home Alabama.”
Rep. Susan DuBose, R-Hoover
“The tax cuts that we did. Between grocery taxes and overtime pay, we have cut the most taxes in the Legislature in Alabama history so I’m really proud of that. Giving money back to the people, give them back their hard earned dollars.
Passing my very first bill, House Bill 261, the women’s sports protection bill protecting women’s college athletes. Make sure they play according to their biological gender.”
Rep. Matt Simpson, R-Daphne
“I would say the fentanyl trafficking bill, the adoption bill, the grocery tax cut… so many things that we’ve made have been lifelong changes to better the state of Alabama, and I’m extremely happy with what we’ve done.”
Rep. Ontario Tillman, D-Bessemer
“I can say the overtime tax and the grocery tax bill. Those are the two major topics.”
Rep. Napoleon Bracy, D-Saraland
“The biggest accomplishments, I think, will be the jobs bills, the incentives, definitely that. Great budgets. Pay raises all of our employees. I think that’s just the top of the fold. Funding for our employees, and centers for our businesses, giving people the opportunity to get great jobs and come to work.”
Rep. Steve Hurst, R-Munford
“I would say the cooperation out of both parties sitting down and discussing things. I’ve been here 24 years, and this is probably one of the calmest, reaching out to each other (sessions) that I’ve seen in some time.”
House Speaker Nathaniel Ledbetter, R-Rainsville
“If you look at the things we accomplished starting out the session; two priority bills, fentanyl and adoption, I think that was significant. You look at all the accomplishments with the tax cuts, the largest tax cut in Alabama history, rebates to the people of Alabama, along with the ARPA funds where we’re putting more into water and sewer in people’s cities… I mean, it’s been a historic session in my opinion.”