SB363 Alabama 2011 Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsors

Vivian Davis FiguresGeorge M. “Marc” KeaheyBobby D. SingletonPriscilla DunnLinda Coleman-MadisonRoger Bedford, Jr.Quinton RossHank SandersRodger SmithermanWilliam “Bill” M. BeasleyJerry L. Fielding

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sales tax on food removed, Amendment 225 (Section 211.04, Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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

SB363 would repeal Amendment 225, limit the state deduction for federal income taxes for individuals, and exempt food and over-the-counter drugs from state sales tax while barring local governments from imposing separate taxes on those items.

What This Bill Does

If enacted, it repeals Amendment 225. It then limits how much federal income tax individuals can deduct on their Alabama return, with full deduction up to specific AGI thresholds and phased reductions above those thresholds. It also starts Jan 1, 2012, an exemption of food and over-the-counter drugs from state sales tax; local governments would still tax these items at the local rate but could not impose a separate local sales tax that applies only to food or OTC drugs.

Who It Affects

• Individual income taxpayers in Alabama, whose state deduction for federal taxes would be capped or fully allowed based on filing status and adjusted gross income, changing their state tax liability.
• Local governments and general consumers in Alabama, who would see changes in tax rules for food and OTC drugs: the state sales tax would be removed on these items, local taxes on them could remain but a separate local tax on just these items would be prohibited.

Key Provisions

• Repeals Amendment 225 of the Alabama Constitution (now Section 211.04).
• For tax years after 2011, creates a new deduction rule for federal taxes paid or accrued by individual taxpayers, with full deduction up to AGI thresholds (e.g., $100,000 for single/HOH, $200,000 for married filing jointly) and phased reductions above those thresholds (specific percentage reductions per amount of excess AGI).
• Starting January 1, 2012, exempts the sale of food and over-the-counter drugs from state sales tax, while local governments may continue to collect their local portion of sales tax but may not levy a separate sales tax only on food or OTC drugs; food and OTC definitions align with federal SNAP definitions and FDA labeling rules.
• Requires the election to approve the constitutional amendment and describes ballot language for voter consideration.

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