SB387 Alabama 2012 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2012

Title

State sales and use tax increased, phase-in period, sales and use tax on food phased out, exempt by 2007, counties and municipalities prohibited from increasing sales tax on food, Secs. 40-23-2, 40-23-61 am'd.

Summary

SB387 would raise Alabama's state sales tax in steps, then eliminate the tax on food by 2015, and bar counties and municipalities from increasing food taxes.

What This Bill Does

It raises the state general sales/use tax rate in stages: 4.25% in 2012, 4.5% in 2013, 4.75% in 2014, and 5% in 2015. At the same time, it phases out the food tax over four years by reducing it by one percentage point per year, ending with an exemption on 9/1/2015; the bill defines 'FOOD' per federal SNAP rules. It also creates a separate food tax schedule (3% in 2012, 2% in 2013, 1% in 2014, 0% in 2015) and makes food tax exemption final in 2015. Additionally, it designates portions of related vehicle taxes to the Education Trust Fund and prohibits counties and municipalities from raising food taxes.

Who It Affects

• General consumers in Alabama who would pay higher sales taxes on most goods through 2015 due to the higher general rate, then see the food tax decrease toward exemption.
• Food buyers/households who would see the food tax drop each year and become tax-exempt by 2015.

Key Provisions

• Provision 1: Establishes a phased-in increase of the state sales and use tax rate to 4.25% (2012), 4.5% (2013), 4.75% (2014), and 5% (2015) and amends Sec. 40-23-2 and 40-23-61 accordingly.
• Provision 2: Phase-out of the state tax on food over four years with a separate food tax schedule (3% in 2012, 2% in 2013, 1% in 2014, 0% in 2015), defines Food per SNAP, requires by 2015 exemption, bans local increases on the food tax, and specifies revenue distribution for certain taxes.

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