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Split Tax Rates on Grocery Receipts across State Explained

BY SARAH STEPHENS

ELMORE/AUTAUGA NEWS

The photo above shows a recent receipt in Millbrook. It indicates how SNAP food items are taxed at a rate of 8.5 percent, and a separate tax rate by the city, state and county. Split tax rates are now showing on receipts across the state.

Two different sales tax rates are now showing up on grocery store receipts and is causing some confusion across the state.

We have received several screenshots from readers, showing the two different tax rates now listed on receipts from grocery stores.

This is new in this state after Alabama government lowered the sales tax rate on SNAP approved items. From now on you will see two different tax rates.

With the new rate, all food that is under SNAP (meats, vegetables, breads, cheeses, etc) is now taxed at a lower rate. Everything else is set at the local and state tax rate. In Millbrook, the sales tax rate went up on items by one cent that are not covered by SNAP. You see different rate splits, because the state dropped their sales tax rate for SNAP items.

The Millbrook tax rate increased by one cent beginning this month. However, it remains at the same rate, or lower, than most neighboring cities by half a cent. 

If you missed it, this is an article we ran some time back about Millbrook’s plans to increase their sales tax by one penny. – https://elmoreautauganews.com/2023/06/06/millbrook-votes-to-raise-sales-tax-to-9-5-percent-ahead-of-governors-signature-on-house-bill-479/