Alabama House Bill Aims To Ease Financial Pressure

With the price of groceries, gasoline and most any other life essential rising rapidly, a bill making its way through the Alabama Legislature could provide some help. House Bill 527 passed the Alabama House Tuesday and is now headed for debate in the Senate. It would help with taxation on overtime compensation and provide a 60-day grocery tax holiday.

Sponsored by House Majority Whip, Madison County Rep. James Lomax (R-20), the bill would establish an individual income tax deduction of up to $1,000 on Alabamians’ overtime pay per year. An amendment tacked on by Jefferson County Rep. Mike Shaw (R-47), also added a sales tax holiday on groceries to the bill. That holiday would run from May 1 to June 30. It passed by a vote of 102-0.

“Lowering taxes is always something I think we should be moving toward if we have any opportunity, but what I keep hearing about is grocery tax…” Shaw told lawmakers during floor debate. “My hope is that this will lead to some good discussion in the offseason and maybe we can jump right back into it next year.”

Democrats have tried repeatedly to cut the grocery tax completely but have failed. Alabama is one of only 13 states that still impose a state-wide grocery tax.

The overall bill passed on a 100-0 vote. If passed by the senate and signed by Gov. Ivey, the overtime bill would become effective on October 1. The grocery tax holiday legislation would go into effective immediately.