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AL SB257
Bill
Status
4/27/2023
Primary Sponsor
Andrew Jones
Click for details
AI Summary
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Defines "food" for Alabama sales and use tax purposes using the federal Supplemental Nutrition Assistance Program definition from 7 U.S.C. § 2011 et seq.
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Reduces state sales tax on food from 4% to 3.5% effective September 1, 2023, with additional 0.5% reductions annually each November 1 until reaching 2%, contingent on Education Trust Fund revenue growth of at least 2% year-over-year.
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Establishes county and municipal food sales tax rates at their existing general retail rate as of the bill's effective date, with counties and municipalities able to reduce or eliminate food taxes by ordinance or resolution adopted at least 60 days before implementation.
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Applies the same food definition and tax rate structure to both state and local sales and use taxes, replacing previous undefined treatment of food items.
Legislative Description
Relating to sales taxes; to amend Section 40-23-1, as last amended by Acts 2022-199 and 2022-291, 2022 Regular Session, Code of Alabama 1975, Section 40-23-2, as last amended by Act 2022-346, 2022 Regular Session, Code of Alabama 1975, Section 40-23-60, as last amended by Act 2022-199, 2022 Regular Session, Code of Alabama 1975, and Section 40-23-61, Code of Alabama 1975; to define "food" and begin phasing-out the state sales and use tax on food on September 1, 2023; to require certain growth targets in the Education Trust Fund for future sales tax reductions on food; to establish the sales and use tax rate on food for purposes of county and municipal sales and use taxes as the existing general or retail sales and use tax rate; and to authorize a county and municipality to reduce the sales and use tax rate or exempt food from local sales and use taxes.
Last Action
Introduced and Referred to Senate Finance and Taxation Education
4/27/2023