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Starting Today, Alabama Cuts Grocery Sales Tax to 2% and Suspends Diaper Tax

Local taxes remain in place, with the diaper break set to end after three years.

Overview

  • The state rate on qualifying food drops from 3% to 2%, with estimated savings of about $122 million a year for shoppers.
  • Alabama stops collecting its 4% tax on diapers and specified baby supplies under a three-year exemption projected to save about $13 million annually.
  • Local sales tax rates on groceries do not change, though lawmakers removed a prior restriction to make local food-tax cuts easier.
  • Homewood police arrested Mercutio Southall on first-degree arson and criminal mischief charges after a Walmart fire that caused about $130,000 in damage.
  • Red snapper season expands to up to seven days a week until the 664,552-pound state quota is reached, with roughly two-thirds already landed by Aug. 24.