Hoover grocery tax break on hold

4 months ago 2
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JOINING US TONIGHT AT SIX. I’M SHERI FALK I’M GUY RAWLINGS THE STATE PUTTING THE BRAKES ON HOOVER’S PLANNED GROCERY TAX BREAK. WVTM 13 S JON PAEPCKE JOINS US LIVE FROM HOOVER IN POP FROM A PUBLIX IN HOOVER. JOHN, WHAT KIND OF MONEY WOULD THIS TAX HAVE SAVED SHOPPERS THERE? WELL, SHERI, A HALF A PENNY, ACTUALLY. AND BASED ON MY MATH, DEPENDING ON HOW MUCH YOU AND YOUR FAMILY SPEND EVERY WEEK AT THE GROCERY STORE, YOU WOULD HAVE BEEN ABLE TO KEEP. BETWEEN 50 AND $75 IN YOUR POCKET PER YEAR. BUT THANKS TO A MIX UP BETWEEN THE CITY OF HOOVER AND STATE LAW, THOSE SAVINGS WILL HAVE TO WAIT. THE GROCERY PRICES ARE STILL GRIPPING THE COUNTRY. TAKE EGGS. THEY ARE A THIRD MORE THAN A YEAR AGO. LAST OCTOBER, HOOVER DECIDED TO GIVE SHOPPERS A HALF PENNY GROCERY TAX BREAK. WE SAW THE EFFECTS THAT INFLATION WAS HAVING ON THE COUNTRY AND IN OUR LOCAL POPULACE, AND WE WANTED TO GIVE SOME TYPE OF RELIEF THAT WE THAT WE COULD. HOOVER’S GROCERY LEVY WOULD HAVE DROPPED FROM 3.5 DOWN TO 3%. AN OVERALL 14% CUT. THE SAVINGS WERE SET TO KICK IN TODAY, BUT DURING HOOVER’S RECENT BUDGET PLANNING, THE STATE TOLD THE CITY THE SAVINGS DID NOT GO FAR ENOUGH OUT TO REACH BACK OUT TO US AND SAID, HEY, YOU KNOW, STATE LAW ALLOWS 25% REDUCTION. THERE’S NO LEEWAY IN BETWEEN 0 AND 25%. CITY COUNCILOR CASEY MIDDLEBROOKS SAID BY THE TIME HOOVER FOUND OUT, IT WAS TOO LATE TO PASS, A STEEPER GROCERY DISCOUNT BEFORE THE BUDGET YEAR STARTED. TODAY, AND HE’S NOT SURE IF IT’S POSSIBLE NEXT YEAR, EITHER. WE’RE SEEING A FLATTENING OF OF LOCAL REVENUE THAT WE DIDN’T SEE IN YEARS. EVEN LAST YEAR. SO I THINK IT WOULD BE MUCH MORE DIFFICULT TO ENACT A FULL 25% REDUCTION IN THE GROCERY TAX. SO IF YOU WERE LOOKING FORWARD TO SAVING A BUCK ON YOUR NEXT BIG HOOVER GROCERY SPREE, YOU’LL HAVE TO FIND ANOTHER WAY. I THINK WE’RE ALL DISAPPOINTED THAT WE COULDN’T PROVIDE A LITTLE BIT OF RELIEF, AND FOR THAT, WE APOLOGIZE. HOOVER WILL VOTE TO REPEAL ITS GROCERY TAX BREAK LAW NEXT MONDAY. NOW, THE STATE OF ALABAMA ACTUALLY DROPPED ITS GROCERY TAX FROM FOUR DOWN TO 3% LAST YEAR. BUT THE EDUCATION TRUST FUND REVENUE DID NOT RISE TO THE REQUIREMENT NEEDED TO DROP IT. ANOTHER PERCENT THIS YEAR.

State halts Hoover's grocery tax break set to go into effect Tuesday

Hoover grocery tax break on hold

Grocery prices are still gripping the country. Take eggs, for example.Right now, they cost a third more than a year ago.Last October, Hoover’s city council decided to give shoppers a half-penny grocery sales break. “We saw the effects that inflation was having on the country, in our local populace. And we wanted to give some type of relief that, that we could,” City Councilor Casey Middlebrooks said.Hoover's grocery levy would have dropped from 3.5 down to 3 percent; an overall 14 percent drop.Those savings were set to kick in on Tuesday.However, during Hoover's recent budget planning, the Alabama Department of Revenue told the city the savings did not go far enough.“ALDOR reached back out to us and said, hey, yeah, state law allows 25% reduction. There's no leeway in between 0 and 25%,” Middlebrooks said.He said by the time Hoover found out, it was too late to a pass steeper grocery discount before the budget year started Tuesday. Plus, Middlebrooks is not confident they can afford it next year, either.“We're seeing a flattening of local revenue that we didn't see in years, even last year. So, I think it would be much more difficult to enact, for 25% reduction in the grocery tax,” he said.So, if you were looking forward to saving a buck on your next big Hoover grocery spree this week, you'll have to find another way.“I think we're all disappointed that we couldn't provide a little bit of relief. And for that, we apologize,” Middlebrooks said.Hoover will vote to repeal its grocery tax break law next Monday.

HOOVER, Ala. —

Grocery prices are still gripping the country.

Take eggs, for example.

Right now, they cost a third more than a year ago.

Last October, Hoover’s city council decided to give shoppers a half-penny grocery sales break.

“We saw the effects that inflation was having on the on the country, in our in our local populace. And we wanted to give some type of relief that, that we could,” City Councilor Casey Middlebrooks said.

Hoover's grocery levy would have dropped from 3.5 down to 3 percent; an overall 14 percent drop.

Those savings were set to kick on Tuesday.

However, during Hoover's recent budget planning, the Alabama Department of Revenue told the city the savings did not go far enough.

“ALDOR reached back out to us and said, hey, yeah, state law allows 25% reduction. There's no leeway in between 0 and 25%,” Middlebrooks said.

He said by the time Hoover found out, it was too late to a pass steeper grocery discount before the budget year started Tuesday.

Plus, Middlebrooks is not confident they can afford it next year, either.

“We're seeing a flattening of local revenue that we didn't see in years, even last year. So, I think it would be much more difficult to enact, for 25% reduction in the grocery tax,” he said.

So, if you were looking forward to saving a buck on your next big hoover grocery spree this week, you'll have to find another way.

“I think we're all disappointed that that we couldn't provide a little bit of relief. And for that, we apologize,” Middlebrooks said.

Hoover will vote to repeal its grocery tax break law next Monday.

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