Clay mayor says grocery tax cut can encourage more shoppers

CLAY, Ala. (WBRC) - Lawmakers passed a bill this week that would cut the state’s grocery tax to 2% by September of 2024.

This is just eight months after the Clay City Council passed something similar in their own city. They cut their local grocery tax in half so now community members only pay two cents per dollar rather than four cents towards the municipal portion of the 10 cent grocery tax.

Mayor Webster says they initially passed the cut to help out their citizens since the cost of groceries skyrocketed last year because of inflation. He says they were able to pass the cut last year because financially, they’re better off than they ever have been and the city wants to prioritize its citizens.

The mayor says the tax cut has been positive and brings in more shoppers from outside the city.

“I think actually it helped the grocery stores because more people wanted to shop at Piggly Wiggly and Publix and Dollar General because the taxes were a little bit lower,” said Mayor Webster. “People said they were coming here because they could save a little money.”

Clay was the first city in the state to add this kind of ordinance.

As far as the state tax cut, the bill now heads to the governor’s desk to sign.

Get news alerts in the Apple App Store and Google Play Store or subscribe to our email newsletter here.

Copyright 2023 WBRC. All rights reserved.