City of Clay helps community members battle rising costs by cutting grocery tax

CLAY, Ala. (WBRC) - The City of Clay is cutting it’s local grocery tax in half. Starting this week, community members will only pay two cents per dollar rather than four cents towards the municipal portion of the 10-cent grocery tax.

City Manager, Ronnie Dixon said the city wanted to help citizens with the rising cost of goods in a way that would impact everyone.

The cut is implemented on Supplemental Nutrition Assistance Program (SNAP) approved groceries at the town’s Piggly Wiggly, Publix and two Dollar Generals.

The cut means the state will lose $1.3 million out of its budget over the next two years. Dixion said the city is in a good place finically.

“I don’t think municipal government is intended to be a bank. We’ve got three million dollars or four million dollars just sitting in this fund. That doesn’t do anybody any good,” said Dixon.

Clay is the first city in the state to add this kind of ordinance. It will be in place for the next two years, then the city will re-evaluate.

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