SB144 Summary

• Proposes a constitutional amendment to limit federal income tax deductions for Alabama individual income taxpayers to a maximum of $6,000 for single, head of household, and married filing separately filers, and $12,000 for married filing joint filers, effective for tax years beginning after December 31, 2020.

• Exempts sales of food from state sales and use taxes beginning October 1, 2020, with food defined according to the federal Supplemental Nutrition Assistance Program definition under 7 U.S.C §2011 et seq.

• Allows local governments to continue collecting the local portion of sales taxes on food at the same rate as before the exemption.

• Requires the Legislature to provide a new definition of food by general law if the federal Supplemental Nutrition Assistance Program definition ceases to exist.

• Directs election officials to place the amendment on the ballot with specific language describing the proposed changes for voter approval.