HB480 Alabama 2011 Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

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sales tax on food removed, Amendment 225 (Section 211.04, Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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

HB480 would repeal Amendment 225 and remove the state sales tax from food and over-the-counter drugs, while allowing local taxes to continue at their current rates.

What This Bill Does

It repeals Amendment 225 of the Alabama Constitution (now Section 211.04). Beginning September 1, 2012, the state would exempt the sale of food and over-the-counter drugs from the state sales tax, while local governments would still levy sales taxes on these items at the same rate as their portion of the retail tax. It defines 'food' using the federal SNAP definition (with a provision to redefine if SNAP changes) and defines 'over-the-counter drugs' as non-prescription drugs with FDA labeling; grooming and hygiene products are not included. An election would be held to approve the amendment, with standard ballot language and Yes/No choices.

Who It Affects

• All Alabama residents who purchase food or over-the-counter drugs: pay no state sales tax on these items starting Sept. 1, 2012 (local taxes may still apply).
• Local governments in Alabama: continue to collect local sales taxes on food and OTC drugs at the same local rate as before.
• Retailers and sellers of food and OTC drugs: no state sales tax collection on these items, but must continue to collect any applicable local sales tax.
• State government: would lose state sales tax revenue from food and OTC drug sales.

Key Provisions

• Repeals Amendment 225 of the Constitution (now Section 211.04) and removes it from the official recompiled Constitution.
• Starting September 1, 2012, exempts sales of food and over-the-counter drugs from the state sales tax; local governments retain their local sales tax at the same rate as the local portion of the retail tax.
• Defines 'food' using the federal SNAP definition (7 U.S.C. §2011 and related) and requires a new general-law definition if the SNAP definition ceases to exist.
• Defines 'over-the-counter drugs' as non-prescription drugs with a label meeting 21 C.F.R. §201.66, including a drug facts panel; excludes grooming and hygiene products from the exemption.
• Requires an election to approve the amendment at the next statewide election, with standard ballot language and Yes/No choices.

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