SB585 Alabama 2010 Session

Summary

Primary Sponsor

Hank Sanders

Democrat

Session

Regular Session 2010

Title

State income tax, federal deduction limited for individual taxpayers, state sales tax on food removed, Amendment 225 (Section 211.04, Recompiled Constitution of Alabama of 1901, as amended), repealed, const. amend.

Summary

SB585 would repeal Amendment 225, limit the federal income tax deduction for Alabama individual taxpayers, and start exempting food and over-the-counter drugs from state sales tax while banning local governments from imposing separate taxes on those items.

What This Bill Does

It repeals Amendment 225 and establishes new rules for the federal income tax deduction for individual taxpayers, with full deductions for lower incomes and a graduated reduction for higher incomes. Beginning in 2011, the sale of food and over-the-counter drugs would be exempt from state sales tax, with local governments continuing to collect their share of the local tax but not permitted to levy separate taxes on those items. The bill also defines what counts as food and OTC drugs and notes exclusions for grooming and hygiene products; it ties the food definition to the SNAP program and allows the legislature to redefine food if SNAP changes.

Who It Affects

• Alabama individual income taxpayers; their federal tax deduction on state returns would be limited based on filing status and adjusted gross income, with a full deduction for lower incomes and a phasedown for higher incomes.
• Local governments and consumers purchasing food or over-the-counter drugs; state sales tax on these items would be eliminated, but local taxes on these items could not be separate taxes and would follow the existing local rate portion of the retail tax.

Key Provisions

• Repeals Amendment 225 of the Alabama Constitution (Section 211.04).
• For tax years after 2010, limits the federal income tax deduction for individual taxpayers with a tiered formula based on filing status and income: full deduction at AGI thresholds (≤ $100,000 for single/HOH or ≤ $200,000 for married filing jointly); partial deduction reductions for higher incomes (1% per $500 of AGI over the threshold for singles/HOH; 1% per $1,000 of AGI over the threshold for married filing jointly).
• Beginning January 1, 2011, exempts the sale of food and OTC drugs from state sales tax; local governments must continue to collect the local portion of the sales tax at the same rate but cannot levy a separate tax on food or OTC drugs.
• Defines food by SNAP standards and OTC drugs as nonprescription drugs with labeling per 21 CFR 201.66; excludes grooming and hygiene products from OTC drug coverage; legislature to define food if SNAP definitions change.

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