SB66 Alabama 2012 Session

Summary

Primary Sponsor

Hank Sanders

Democrat

Session

Regular Session 2012

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sales tax on food removed, Amendment 225 (Section 211.04, Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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

SB66 would repeal Amendment 225, change how the state handles federal tax deductions for individuals, and remove state sales tax from food and over-the-counter drugs while barring localities from taxing those items separately.

What This Bill Does

Repeals Amendment 225 of the Alabama Constitution and replaces it with new tax rules. Allows individual Alabama taxpayers to deduct federal income taxes paid or accrued, but with income-based limits that reduce the deduction for higher incomes. Starting January 1, 2012, exempts the sale of food and over-the-counter drugs from state sales tax, and prohibits local governments from levying separate sales taxes that apply only to food or OTC drugs. Defines food using the federal SNAP program definition and defines over-the-counter drugs by labeling/drug requirements; if SNAP changes, the Legislature would define food by general law.

Who It Affects

• Individual income taxpayers in Alabama, who would see changes to how much federal tax they can deduct from their state income tax, with full deduction up to certain income thresholds and gradual reductions above those thresholds.
• Consumers and local governments, who would pay no state sales tax on food or OTC drugs, and local governments would be barred from creating separate taxes that apply only to those items (though general local sales taxes could still apply at the same rate).

Key Provisions

• The amendment repeals Amendment 225 (Section 211.04) of the Alabama Constitution.
• For tax years after 2011, federal income taxes paid or accrued may be deducted from individual Alabama income tax, with tiered limits based on filing status and adjusted gross income.
• Beginning January 1, 2012, the sale of food and over-the-counter drugs is exempt from state sales tax; local governments must collect sales taxes on these items at the same rate as the local portion of the retail tax, but may not levy separate food/OTC-only taxes.
• Food is defined per the SNAP program; OTC drugs are non-prescription drugs with specific labeling requirements; grooming/hygiene products are excluded from OTC drug definitions.
• If the SNAP food definition changes, the Legislature may redefine 'food' by general law.

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