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Speaker Ledbetter: ‘I want to eliminate the grocery tax entirely’ and ‘reconsider’ the overtime tax reduction

Alabama House Speaker Nathaniel Ledbetter recently spoke to reporters about the outcomes of the 2025 legislative session.

“I think it was a solid session,” Ledbetter remarked.

Regarding tax matters, he expressed satisfaction with the achievements but acknowledged that there was more work to be done.

“We needed to consider it some more,” he noted. “My goal is to completely eliminate the grocery tax. Just for context, cutting it by four cents could be significant. I think a two-cent reduction might save families around $350 to $400.”

This week, Governor Kay Ivey signed HB386, which lowers Alabama’s grocery sales tax from 3% to 2%.

Ledbetter mentioned that while some proposals made it through the House, they ultimately failed in the Senate.

“Some of the older proposals we pushed for didn’t pass the Senate without state tax implications,” he clarified. “I believe there are opportunities ahead of us.”

One notably contentious tax relief proposal was the extension of tax breaks on overtime pay. This bill did not pass as many lawmakers were worried about potential impacts on the Education Trust Fund (ETF).

“I’m not opposed to overtime tax relief,” Ledbetter commented. “In fact, I co-sponsored it, but we had to ensure it was feasible too. We might’ve discussed this with leader Daniels, and there could be a way forward.”

Ultimately, Ledbetter expressed pride in his colleagues’ efforts this year.

“We’re proud of what we accomplished. We managed it without overextending our budget,” he explained. “It’s easy to advocate for more spending, but we also have to ensure we can fund essential services, especially payroll for emergency personnel.”