Walmart, Samâs Club overcharged Alabama customers on first day of grocery tax reduction
Today is the first day of Alabama’s grocery tax reduction.
However, some customers at Walmart didn’t see it immediately. The retailer confirmed that some Walmart and Sam’s Club members in Alabama were mistakenly overcharged sales tax.
In a statement to WAFF, Walmart stated its systems mistakenly tacked on both the old rate and the new rate. At some stores, customers were already getting refunds Friday afternoon, according to at least one shopper.
“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,” the retailer said through a spokesperson.
A bill passed in the Alabama legislature during its last session cleared the way for a grocery tax cut effective Sept. 1. On that day, the 4% sales tax rate on groceries will go down to 3%. City and county sales taxes will remain the same but shoppers will see the difference – however slight – on the bottom line.
According to Alabama Arise, the 1 percentage point reduction will save an Alabama family of four about $150 a year.
The sales tax rate is expected to drop an additional 1 percentage point in September 2024, bringing the total two-year cut to 2 percentage points – but only if the state’s Education Trust Fund has grown by 3-1/2% over the previous fiscal year. If the growth projections don’t occur, the second 1% cut will be delayed until the ETF growth requirement is met.