Grocery Tax In Alabama Lowered By 1%; Walmart Error Double Taxes Customers Friday : NorthEscambia.com

The tax on food in Alabama was lowered by 1% on Friday under a bill passed by the Alabama legislature.

The state’s sales tax was lowered from 4% to 3% on food items. Most counties and municipalities add additional sales tax, making the full tax over twice as much. On September 1 of next year, the tax on food items will be lowered another 1% if conditions are met — if the growth from other tax sources is up by at least 3.5% for the Education Trust Fund.

On Friday, Walmart and Sam’s Clubs across the state were mistakenly double taxing items.

“Earlier today, some Walmart customers and Sam’s Club members across Alabama were incorrectly overcharged sales tax while shopping with us. Effective Sept. 1, the sales tax rate on food decreased by one percentage point statewide. Our systems mistakenly charged both the old rate and the new rate at the time of sale,” according to Walmart. “The situation is being corrected, and we’re asking potentially impacted customers to take their receipts to their nearby stores or clubs for a refund of the higher sales tax.”

Before Friday, Alabama was one of three states that charged full tax on groceries. There is no tax on groceries in Florida.

Pictured: A Walmart receipt from Friday, September 1 showing a customer in Alabama double taxed on a food purchase. Photo for NorthEscambia.com, click to enlarge.