AL HB336

Eliminates the 2% state sales and use tax on food effective September 1, 2026, building on a prior reduction from 3% to 2% under Act 2025-305.

Defines "food" according to Section 40-23-1 of the Alabama Code, which generally covers food for human consumption (excluding prepared foods, alcohol, and tobacco).

Authorizes county and municipal governments to adopt companion exemptions for local sales and use taxes on food through resolution or ordinance, with at least 60 days notice before taking effect on October 1.

Amends Sections 40-23-2, 40-23-40, and 40-23-61 of the Code of Alabama 1975 to implement the exemption across sales tax and use tax statutes.

Referred to the Ways and Means Education Committee; first read January 27, 2026, with 28 co-sponsors led by Representative McClammy.