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AL HB396
Bill
Status
4/27/2023
Primary Sponsor
Arnold Mooney
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AI Summary
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Defines "food" for Alabama sales tax purposes using the federal Supplemental Nutrition Assistance Program definition under 7 U.S.C. § 2011, et seq., with Legislature to provide new definition if federal definition no longer exists.
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Exempts food sales from state sales and use taxes effective September 1, 2024.
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Establishes county and municipal sales tax rate on food as the general or retail sales tax rate in effect on the bill's effective date, with no additional food taxes allowed after enactment.
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Allows county and municipal governing bodies to reduce the sales tax rate on food or fully exempt food from local taxes through ordinance or resolution adopted at least 60 days before effectiveness.
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Bill becomes effective January 1, 2024, with state food tax exemption taking effect September 1, 2024.
Legislative Description
To amend Sections 40-23-1 and 40-23-4, as last amended by Act 2022-291, Act 2022-293, Act 2022-373, and Act 2022-199, 2022 Regular Session, Code of Alabama 1975, related to sales taxes; to define food and exempt sales of food from state sales and use taxes; to establish the local sales tax rate on food for purposes of county and municipal sales and use taxes as the existing general or retail local sales tax rate; and to allow a local governing body to reduce the local sales tax rate or exempt food from local sales and use taxes.
Relating to sales and use tax; to define food; to exempt food from sale and use tax; to provide for local sale tax on food
Last Action
Introduced and Referred to House Ways and Means Education
4/27/2023