AL HB130

Proposes a constitutional amendment to repeal Amendment 225 of the Alabama Constitution (Section 211.04) and exempt food and over-the-counter drugs from state sales tax effective September 1, 2014.

Defines food as food eligible under the federal Supplemental Nutrition Assistance Program (7 U.S.C. §2011, et seq.), with the Legislature authorized to provide a new definition if the federal program ceases to exist.

Defines over-the-counter drugs as drugs sold without prescription containing labels identifying them as drugs under 21 C.F.R. §201.66, excluding grooming and hygiene products such as soaps, shampoo, toothpaste, mouthwash, antiperspirants, and sun tan lotions.

Local governments continue to collect sales taxes on food and over-the-counter drugs at the same rate as the local portion of retail sales tax despite the state exemption.

Amendment requires voter approval through a statewide primary, general, or special election held in accordance with Alabama Constitution Sections 284 and 285.