State and Local Tax (SALT) attorney Bruce Ely was quoted in Bloomberg BNA on the future of the grocery tax after Gov. Kay Ivey disbanded a task force considering a grocery purchase exemption from Alabama's sales tax. Alabama is one of the few states without some form of sales tax relief for grocery purchases. Ely, who serves on Bloomberg BNA's State Tax Advisory Board, previously worked on the grocery tax issue and said he was a little disappointed to see the task force disbanded.
“I'm hoping the governor will take a leadership role on this long overdue reform,” Ely said. He drafted a legislative proposal in 2009 to implement what he called “an Idaho-style refundable tax credit” for low-income taxpayers that would be equivalent to the amount of sales tax paid on groceries. The tax credit proposal was previously estimated to cost the state approximately $25 million, he said, and had support at the time from the House GOP caucus.
The complete article, “Future of Alabama Grocery Tax Unclear After Tax Force Nixed,” appeared in Bloomberg BNA on July 18, 2017. (login required)