SB363 Summary

• Proposes a constitutional amendment to repeal Amendment 225 of the Alabama Constitution and modify the federal income tax deduction for individual taxpayers beginning in tax year 2012.

• Limits federal income tax deductions based on adjusted gross income: taxpayers earning $100,000 or less (single/head of household) or $200,000 or less (married filing jointly) receive full deductions; higher earners face reductions of 1% per $500-$1,000 of income above the threshold.

• Exempts sales of food and over-the-counter drugs from state sales tax effective January 1, 2012, with food defined according to the federal Supplemental Nutrition Assistance Program.

• Prohibits local governments from levying separate sales taxes exclusively on food or over-the-counter drug sales, though local governments may continue collecting standard sales tax rates on these items.

• Requires election approval by a majority of qualified voters in accordance with Alabama constitutional procedures.