WIREGRASS, Ala. (WDHN) — The beginning of September brings college football and the Labor Day holiday, but this year, the new month brings a tax cut on groceries.
The state’s grocery tax has decreased by 1% going from 4% to 3%.
However, this change came with a mistake from Walmart and Sam’s Clubs across the state.
The national chain stores have admitted that some customers across the state may have been charged both the old sales tax rate and the new sales tax rate.
In a statement from the company, a spokesperson said that the issue has now been fixed and has asked customers to check their receipts and to bring them to their local store to get corrected if they paid in cash and if they paid with a credit card and other forms of payment then they will receive a notification that their refunds were automatically applied.
Customers will get a refund for the higher of the two taxes.
However here locally, at stores like Hometown Food Center in Headland, they have not seen this problem.
“People are noticing it on the bottom of their receipt. We have been making sure all day long that it’s being done the right way,” Owner of Hometown Food Center, Jai Freeman said.
Freeman says his store has been prepping for this change for a couple of months and last week they made sure the system was ready for the lower grocery tax.
“We haven’t seen anything like that. Don’t anticipate it. Our system seems to running perfectly the way it was designed to work,” says Freeman.
According to Alabama Arise, the 1% reduction will help a family of four save about $150 a year.
The reduced tax applies to qualified foods such as fruit, vegetables, and meats. Prepared foods and alcoholic beverages are not subject to the tax cut.