HB242 Alabama 2011 Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

Co-Sponsors

Patricia ToddJohnny Mack MorrowJoe HubbardElaine BeechGeorge “Tootie” BandyMike HubbardNapoleon BracyBerry ForteDavid ColstonDarrio MeltonGreg BurdineDexter GrimsleyJohn RobinsonRichard LindseyLaura HallArtis McCampbellBarbara Bigsby BoydJoseph C. MitchellDemetrius C. NewtonPebblin W. WarrenRalph HowardThad McClammyChris EnglandOliver RobinsonMary MooreMerika ColemanJuandalynn Givan

Session

Regular Session 2011

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sales tax on food removed, Amendment 225 (Section 211.04, Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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

HB242 would repeal Amendment 225 and set new rules for income tax deductions and sales taxes, including exempting food and most OTC drugs from state tax and preventing local taxes that target only those items.

What This Bill Does

It repeals Amendment 225. It creates new rules for the state deduction of federal income taxes paid, with specific income-based limits and phase-outs. It starts a state sales tax exemption for food and over-the-counter drugs starting in 2012, while prohibiting local governments from imposing separate taxes that apply only to food or OTC drugs. It requires voter approval to adopt the amendment.

Who It Affects

• Individual taxpayers in Alabama, with deductions for federal taxes limited by filing status and adjusted gross income.
• Local governments, which would be barred from levying separate sales taxes only on food or over-the-counter drugs.
• Consumers and retailers of food and over-the-counter drugs, who would benefit from the state sales tax exemption on these items.
• Tax administration and state revenue officials, who would implement new deduction rules and the exemption.

Key Provisions

• Repeal Amendment 225 of the Alabama Constitution (Section 211.04).
• For tax years after 2011, limit the federal income tax deduction for individual taxpayers with specific AGI-based rules.
• Beginning January 1, 2012, exempt the sale of food and over-the-counter drugs from state sales tax; localities may not impose separate food/OTC-only sales taxes.
• Define food as per SNAP and define over-the-counter drugs by labeling and regulatory standards; exclude grooming/hygiene products from OTC drug scope.
• Require an election for approval of the constitutional amendment.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments