SB225 Alabama 2010 Session

Summary

Primary Sponsor

Hank Sanders

Democrat

Session

Regular Session 2010

Title

Federal income tax deduction eliminated from Alabama gross income, state sales tax on food removed, individual income tax standard deductions, personal exemptions, and dependent exemptions, increased, const. amend.

Summary

SB225 would change Alabama's tax system by removing the deduction for federal taxes, raising standard deductions and exemptions, and removing the state sales tax on food.

What This Bill Does

If enacted, the bill would stop allowing the deduction of federal income taxes when calculating Alabama taxable income. It would set the individual standard deduction to match the federal amount and increase personal and dependent exemptions. It would also remove the state sales tax on food starting in 2011, though sales to corporations, S-corporations, and LLCs would still be taxed, and local governments would continue to collect their portion of sales tax. The changes require a constitutional amendment and would apply to tax years beginning after December 31, 2010.

Who It Affects

• Individual taxpayers in Alabama would see changes to their state tax calculations: federal tax deductions would be eliminated, while standard deductions and personal/dependent exemptions would increase.
• Consumers who buy food would benefit from the elimination of the state sales tax on most food items, starting in 2011, with exceptions for sales to certain business entities and ongoing local tax collections.

Key Provisions

• Eliminate the deduction of federal income taxes from Alabama gross income for individual taxpayers (effective for tax years beginning after December 31, 2010).
• Make the individual standard deduction equal to the federal amount allowed under 26 U.S.C. §63 (effective after December 31, 2010).
• Increase the personal exemption for each individual taxpayer to not less than $2,200, with married filing jointly not less than $4,400 (effective after December 31, 2010).
• Increase the exemption for each dependent to not less than $2,200 (effective after December 31, 2010).
• Beginning January 1, 2011, exempt the sale of food from state sales tax; sales to corporations, S-corps, and LLCs remain taxable; local governments continue to levy sales tax on food for their local portion.
• Repeal the existing constitutional provision related to federal tax deduction ( Amendment 225, Section 211.04 ) as part of the amendment process.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments