SB287 Summary

• Increases Alabama's general sales and use tax rate from 4% to 4.25% on September 1, 2014, then to 4.5% on September 1, 2015, to 4.75% on September 1, 2016, and to 5% on September 1, 2017.

• Phases out sales and use taxes on food over four years, reducing the rate by one percentage point annually beginning September 1, 2014, until food becomes fully exempt on September 1, 2017.

• Phases out sales and use taxes on food sold through coin-operated vending machines over three years, reducing rates by one percentage point annually beginning September 1, 2015, until fully exempt on September 1, 2017.

• Requires the Legislature to review the act's results during the 2018 Regular Session and make adjustments to ensure revenue neutrality.

• Becomes effective the first day of the third month following passage and gubernatorial approval.