Grocery Tax Could Soon Be Removed

MONTGOMERY, Ala. (AP) - A proposal to remove the state's 4
percent tax from groceries has passed the first hurdle in the
Alabama Legislature.
The bill by Rep. John Knight of Montgomery was approved Thursday
morning on a voice vote with several members expressing opposition.
A bill to remove the tax from food purchases passed the House last
year, but was defeated in the Senate.
The bill is a constitutional amendment and would have to be
approved by Alabama voters if it passes the Legislature.
The measure would replace the lost revenue from the sales tax by
removing the deduction for federal income taxes paid from some
higher income taxpayers. That's a change from last year's bill that
would have removed the federal income tax deduction for all
taxpayers.


(Copyright 2009 by The Associated Press. All Rights Reserved.)