SB585 Summary

• Proposes a constitutional amendment to repeal Amendment 225 of the Alabama Constitution and implement a tiered federal income tax deduction system for individual taxpayers beginning January 1, 2011.

• Allows full federal income tax deduction for single filers earning $100,000 or less and married filers earning $200,000 or less; reduces deduction by 1% for each $500 (single) or $1,000 (married) of income exceeding those thresholds.

• Exempts food and over-the-counter drugs from state sales tax effective January 1, 2011, with food defined as eligible items under the federal Supplemental Nutrition Assistance Program.

• Permits local governments to continue collecting existing local sales taxes on food and drugs at current rates but prohibits them from levying separate or additional sales taxes exclusively on food or over-the-counter drugs.

• Requires an election on the amendment to be held in accordance with Sections 284 and 285 of the Alabama Constitution and state election laws, with approval needing a majority vote of qualified electors.