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AL SB272

Bill

Status

Introduced

2/18/2016

Primary Sponsor

Gerald Dial

Click for details

Origin

Senate

Regular Session 2016

AI Summary

SB272 Summary

  • Increases Alabama state sales and use tax general rate to 4.5% on September 1, 2016 and to 5% on September 1, 2017.

  • Reduces state sales and use tax on food by 2 percentage points per year beginning September 1, 2016, resulting in 2% tax rate on food for that period.

  • Exempts food sales from state sales and use taxes entirely beginning September 1, 2017, using federal Supplemental Nutrition Assistance Program definition to define "food."

  • Directs Legislature to review results during 2018 Regular Session and make necessary adjustments to ensure the act remains revenue neutral.

  • Takes effect on the first day of the third month following passage and Governor approval.

Legislative Description

State sales and use tax increased, phase-in period, sales and use tax on food phased out, exempt by 2017, counties and municipalities prohibited from increasing sales tax on food, Secs. 40-23-2, 40-23-61 am'd.

Taxation

Last Action

Read for the first time and referred to the Senate committee on Finance and Taxation Education

2/18/2016

Committee Referrals

Finance and Taxation Education2/18/2016

Full Bill Text

No bill text available