SB248 Alabama 2010 Session

Summary

Primary Sponsor

Scott Beason

Republican

Session

Regular Session 2010

Title

Food, state sales and use tax reduced under certain circumstances, counties and municipalities may not increase their sales and use tax rates

Summary

The bill would gradually cut the state tax on food by 1% each year after a 3% growth in Education Trust Fund revenue and would prevent local governments from increasing food taxes beyond current levels.

What This Bill Does

It lowers the state sales and use tax on food by one percentage point at the start of each fiscal year once the Education Trust Fund shows a 3 percent revenue increase. It also stops counties and municipalities from raising their food tax rates above what they are at the act's effective date. It defines key terms for what counts as food, sales tax, and use tax, and sets when the act takes effect.

Who It Affects

• Consumers who buy food in Alabama will pay less state tax on food over time as the reductions take effect.
• Counties and municipalities are restricted from increasing food tax rates above the current levels at the act's effective date.

Key Provisions

• State food tax reduced by one percentage point per year, at the beginning of each fiscal year, after the Education Trust Fund has a 3 percent growth in revenue.
• Counties and municipalities may not increase their food tax rates beyond the rates in effect on the act's effective date.
• Definitions include food as defined for food stamp purposes, sales tax on gross sales/receipts, and use tax on storage, use, or consumption of tangible personal property.
• Effective date is the first day of the third month after the act is passed and approved by the Governor.

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

Subjects

Taxation