EXECUTIVE ORDER NUMBER 28

WHEREAS, the State of Alabama collects sales tax on various goods and items, including groceries;

WHEREAS, the sales tax on groceries applies to essentials, such as meat, dairy, fruits and vegetables, and bread grains – items vital to a healthy, balanced diet; and

WHEREAS, the State of Alabama should ensure that its taxes are fair, and do not unnecessarily burden low-income citizens, as well as the elderly and children of this state.

NOW, THEREFORE, based upon these considerations, and for other good and valid reasons related thereto, I, Robert Bentley, Governor of the State of Alabama, by virtue of the authority vested in me by the Constitution and laws of the State of Alabama, do hereby establish a Grocery Tax Task Force, to analyze and make recommendations regarding Alabama’s sales tax on groceries.

BE IT ORDERED, that the Task Force shall be composed of the following members, or designees:

• The Commissioner of the Alabama Department of Revenue, who shall be chair of the Task Force;
• The Director of the Alabama Department of Finance;
• The Director of the Alabama Rural Development Office;
• The Commissioner of the Alabama Department of Agriculture and Industries;
• Two state representatives, appointed by the Speaker of the Alabama House of Representatives;
• Two state senators, appointed by the President Pro Tem of the Alabama Senate;
• An economist, appointed by the Governor;
• A registered, licensed dietitian, appointed by the Governor;
• A representative of the retail industry, appointed by the President of the Alabama Retail Association;
• A representative of the grocer industry, appointed by the President of the Alabama Grocers Association;
• A representative of the Heart Association, appointed by the Governor;
• A citizen representative, appointed by the Governor; and
• Additional members appointed by the Governor as the Governor deems necessary.

BE IT FURTHER ORDERED, that the Task Force shall adopt rules governing times and places for meetings and the manner of conducting its business. The Task Force and any committee of the Task Force may meet by teleconference. All Task Force members shall serve without compensation.

BE IT FURTHER ORDERED, that the Task Force shall review the sales tax related to groceries and recommend to the Governor and the Legislature changes that ensure a fair and equitable tax while encouraging a healthier Alabama. In relation to reducing or eliminating the sales tax on groceries, the Task Force shall review: best practices and tax structures from other states; the potential fiscal impacts on the state budgets; impacts on healthier lifestyle choices for individuals; ancillary economic impacts other than direct impacts to the state budgets; whether lost revenue from reducing or eliminating the sales tax on groceries should be replaced; and any other issues related to reducing or eliminating the sales tax on groceries. Recommendations may take the form of regulatory or statutory changes, with recommendations due by June 1, 2017.

BE IT FURTHER ORDERED, that this Executive Order shall become effective immediately upon its execution and shall remain in effect until amended or modified by the Governor.

DONE AND ORDERED this 21st day of February, 2017.

Robert Bentley
Governor

Attested

John H. Merrill
Secretary of State