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AL SB227
Bill
Status
2/21/2017
Primary Sponsor
Gerald Dial
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AI Summary
SB227 Summary
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Increases state sales and use tax general rate from 4% to 4.35% effective September 1, 2017, and to 4.70% effective September 1, 2018.
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Phases out state sales and use taxes on food over two years, reducing the rate by 2 percentage points per year beginning September 1, 2017, with food becoming fully exempt from state sales and use taxes on September 1, 2018.
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Defines food using the federal Supplemental Nutrition Assistance Program definition (7 U.S.C §2011, et seq.), with the Legislature required to provide a new definition if the federal definition no longer exists.
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Requires the Legislature to review the results during the 2019 Regular Session and make necessary adjustments to ensure the act is revenue neutral.
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Applies tax rate increases to amusement and entertainment businesses, with existing exceptions for public and nonpublic primary/secondary schools and Alabama High School Athletic Association events.
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
2/21/2017