SB232 Summary

• Proposes a constitutional amendment to repeal Amendment 225 (Section 211.04) of Alabama's Constitution regarding federal income tax deductions for individuals.

• Limits federal income tax deductions for individual taxpayers beginning January 1, 2018: allows full deduction for single filers with adjusted gross income of $100,000 or less (married filing jointly: $200,000 or less); reduces deduction by 1% for each $500 of income above threshold for single filers and 1% per $1,000 above threshold for married filing jointly.

• Exempts sales of food (as defined under the federal Supplemental Nutrition Assistance Program) and over-the-counter drugs from state sales tax effective January 1, 2018, while allowing local governments to continue collecting local sales taxes on these items at existing rates.

• Prohibits local governments from levying separate or dedicated sales taxes exclusively on food or over-the-counter drugs.

• Requires election approval by majority of qualified voters and specifies ballot language describing the amendment's substance.