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AL HB131

Bill

Status

Introduced

2/4/2020

Primary Sponsor

Andrew Sorrell

Click for details

Origin

House of Representatives

Regular Session 2020

AI Summary

  • Phases out state sales and use taxes on food over a 20-year period beginning September 1, 2021, reducing the tax rate by 0.2 percentage points annually.

  • Establishes a graduated reduction schedule from 3.8% tax rate on September 1, 2021, declining to 0.2% by September 1, 2039.

  • Makes food sales completely exempt from state sales and use taxes beginning September 1, 2040.

  • Defines "food" as items eligible under the federal Supplemental Nutrition Assistance Program, regardless of sales method or location.

  • 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 2007, 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 House of Representatives committee on Ways and Means Education

2/4/2020

Committee Referrals

Ways and Means Education2/4/2020

Full Bill Text

No bill text available