What's happened
On May 7, 2025, Alabama's Senate approved a bill to reduce the sales tax on food from 3% to 2%. Meanwhile, Santa Cruz implemented a new 2-cent-per-ounce tax on sugary beverages, aiming to curb consumption and fund health initiatives. Both measures reflect ongoing debates about taxation and public health.
What's behind the headline?
Alabama Sales Tax Reduction
- The Alabama Senate's unanimous vote to lower the food sales tax signals a shift towards reducing the financial burden on residents, particularly in a state where grocery taxes are still prevalent.
- This reduction, costing the state approximately $121 million annually, reflects a growing recognition of the need for tax reform in essential goods.
Santa Cruz Sugary Beverage Tax
- The Santa Cruz sugary beverage tax represents a significant local health initiative aimed at reducing sugar consumption, especially among youth. Despite opposition from the beverage industry, the measure passed narrowly, indicating strong community support for health-focused policies.
- The tax's implementation may inspire similar measures in other jurisdictions, especially as health advocates continue to push for reforms to combat obesity and related health issues.
- The legal challenges ahead regarding state preemption laws could set important precedents for local governance and public health initiatives across California and beyond.
What the papers say
According to AP News, Alabama's Senate voted 34-0 to reduce the food sales tax, with Rep. Danny Garrett stating, "We’re headed toward zero taxes, we’re headed in the right direction. This is big." Meanwhile, The Independent highlights the Santa Cruz sugary beverage tax, which aims to curb sugar consumption and fund health programs. Vice Mayor Shebreh Kalantari-Johnson emphasized the importance of standing up to special interests, stating, "It's about democracy and standing up to special interests." The American Beverage Association criticized the tax as an unfair burden on families, reflecting the ongoing tension between public health initiatives and industry interests.
How we got here
Alabama's sales tax on food was reduced from 4% to 3% in 2023, with further reductions contingent on budget growth. In Santa Cruz, a sugary beverage tax was approved by voters in November 2024, following years of advocacy and legal challenges against state preemption laws.
Go deeper
- What are the implications of the Alabama tax reduction?
- How will the Santa Cruz sugary beverage tax be enforced?
- What other states are considering similar measures?
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California is a state in the Pacific Region of the United States. With 39.5 million residents across a total area of about 163,696 square miles, California is the most populous U.S. state and the third-largest by area, and is also the world's thirty-fourt