Alabama city’s planned grocery tax reduction on hold

Tuesday was supposed to kick off Hoover’s new, lower grocery tax.

However, it didn’t happen because of a facet of state law, city officials said.

Last October, the Hoover City Council unanimously voted to lower the city’s sales tax on groceries by half a percentage point, from 3.5% to 3%. It would have taken effect on Tuesday, Oct. 1.

The stated goal was to provide residents with relief from inflation.

However, state law only allows for a 25-percent reduction – all or nothing. City officials had thought a reduction was allowed up to 25%.

To achieve that, the city would have had to lower the tax to 2.625% to comply with state law. But then, the city would have run afoul of state mandates on incoming revenue to its general fund.

The council plans to repeal last year’s ordinance for the tax drop and reinstate the ordinance that was in place prior to the change at its meeting on Monday.