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AL SB299
Bill
AI Summary
SB299 Summary
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Increases the state sales and use tax general rate from 4% to 4.25% on September 1, 2018, then to 4.5% on September 1, 2019, 4.75% on September 1, 2020, and 5% on September 1, 2021.
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Phases out state sales and use tax on food by reducing the rate by one percentage point per year beginning September 1, 2018 (3% in 2018, 2% in 2019, 1% in 2020, exempt in 2021).
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Defines "food" using federal Supplemental Nutrition Assistance Program standards, with the Legislature to provide a new definition if the federal definition is eliminated.
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Requires the Legislature to review the act during the 2022 Regular Session and make adjustments to ensure the provisions are revenue neutral.
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Becomes effective on the first day of the third month following passage and gubernatorial approval.
Legislative Description
State sales and use tax increased, phase-in period, sales and use tax on food phased out, exempt by 2021, 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
2/8/2018