AL HB387

Amends Section 40-23-40, Code of Alabama 1975, to revise county and municipal authority to reduce sales and use taxes on food.

Eliminates the 25 percent limitation on the rate cut that counties and municipalities may apply to food sales taxes.

Removes the requirement that growth in applicable municipal or county general fund exceed 2 percent over the prior year in order to reduce the food tax rate.

Counties and municipalities may still subsequently increase the food tax rate but not to exceed the rate in effect on June 15, 2023, unless otherwise provided by law.

The act becomes effective on June 1, 2025.