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Wednesday, April 16, 2008

House votes to remove state sales tax from groceries

The Alabama House approved a historic bill Tuesday that would remove the state sales tax from grocery sales. The House voted 63-38 to approve the proposed constitutional amendment that would lower the overall tax bill for low and middle income state residents, while increasing taxes for the more well-to-do taxpayers. If the measure receives final approval in the Senate, Alabama voters will decide the issue in the Nov. 4 general election. To make up for the lost grocery store tax revenue, the amendment would end the state income tax deduction for federal income taxes paid.

The bill received the exact number of "yes" votes needed — 63 — to pass a constitutional amendment.