The chair of the Alabama Senate’s education budget committee is working on a plan to phase out Alabama’s state sales tax on essential foods.

Sen. Arthur Orr, R-Decatur, has a draft bill that would take one penny off the 4-cent state sales tax every year on foods covered by the Women Infants and Children federal program, a list that covers basics like milk, eggs, cheese, fruits, vegetables, whole grain bread, canned tuna, cereal, and infant formula.

Alabama lawmakers have talked about eliminating the state sales tax on food for decades but have never passed a bill. Orr’s proposal, reported earlier by Alabama Daily News, is the latest sign that the idea has more momentum this year than most.

Alabama is one of only a few states that collect their full sales tax on essential foods. A key reason that legislation to phase out the tax has never passed is the concern a loss in revenue to the Education Trust Fund. The tax generates close to $500 million a year for the ETF, the main state funding source for public schools.

Orr said his bill will include a pause provision to help cushion any loss of revenue if the economy slows. The one-cent yearly cut would be put on hold following any year in which revenues to the ETF do not increase by more than 2 percent over the previous year. Revenues usually grow more than 2 percent year-over-year, although they can be flat or decline during an economic slowdown or recession.

Orr said he plans to introduce his bill when the Legislature resumes its regular session next week. Lawmakers are now meeting in special session to allocate $1 billion in federal funds from the American Rescue Plan Act.

“There are multiple proposals floating about,” Orr said. “I wanted to put this one in the mix. I think it’s attainable over time fiscally for the education budget to bear.”

Inflation and its pressure on family budgets has helped bring more attention this year to proposals for tax cuts, including the tax on food. Another factor is that legislators have more money available to fund the education and General Fund budgets than most years. Tax revenues to the ETF exceeded the budget by about $2.8 billion during the last fiscal year, creating a surplus that has fueled talk about tax cuts. Gov. Kay Ivey announced during her State of the State address she would propose a tax rebate, a one-time payment of $400 for individual taxpayers or $800 for two-income households.

“We do have a rather large surplus,” Orr said. “The budgets are in good shape. And it’s certainly time for us to have the conversation in a serious manner in the Legislature and consider certain proposals and see what makes sense.”

The Alabama House Democratic Caucus supports a repeal of the grocery tax. Lt. Gov. Will Ainsworth said on Twitter on Saturday that he is working on a plan to phase out the grocery tax.

Grocery tax repeals were proposed last year, including one by Rep. Andrew Jones, a Republican from Centre. Alabama Arise, an advocacy group for low-income families, has urged lawmakers to repeal the grocery tax for decades.

Orr said he would not support repealing the 4-cent sales tax on groceries all at once, and supports the idea of retaining the tax on junk foods and snacks that fall outside the WIC program.

“But in a narrow scope, focusing on foods that are essential and necessary and not candy bars and Cokes and soft drinks and junk items, I think that’s a more prudent way to approach the issue without compromising the education budget,” Orr said.

Orr said his bill would not affect sales taxes collected by cities and counties on food. But he does intend to include a provision that would prohibit cities and counties from raising their local sales taxes on the essential foods that would no longer be subject to the state tax.