SB390 Summary

• Repeals Amendment 225 (Section 211.04) of the Alabama Constitution effective for tax years beginning after December 31, 2018.

• Limits the federal income tax deduction for individual taxpayers based on adjusted gross income, with single filers at $100,000 and joint filers at $200,000 as threshold amounts, with deductions reduced by 1% for each $500-$1,000 in income above the threshold.

• Exempts sales of food (as defined under the federal Supplemental Nutrition Assistance Program) and over-the-counter drugs from state sales tax beginning January 1, 2019.

• Prohibits local governments from levying separate sales taxes exclusively on food or over-the-counter drugs, though local governments may continue collecting sales taxes on these items at the same rate as other retail sales.

• Requires a statewide election for voter approval of the constitutional amendment in accordance with Sections 284 and 285 of the Alabama Constitution and state election laws.