AL HB42

Authorizes eligible local governments (counties and municipalities that levy local sales and use taxes without using the Alabama Department of Revenue) to reduce or eliminate their local sales and use tax rate on food.

Defines "food" according to 7 U.S.C §2011, et seq., as used in the federal Supplemental Nutrition Assistance Program, regardless of where or how food is sold.

Requires local governing bodies to hold a public hearing and obtain approval by resolution before reducing or eliminating the local food tax rate, with changes taking effect in the following fiscal year.

Permits local governments to subsequently increase the food tax rate or levy a new food tax by following the same public hearing and resolution approval process.

Takes effect immediately upon passage and approval by the Governor.