SB279 Alabama 2013 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Gerald O. Dial
Republican
Co-Sponsor: Tom Whatley
Session: Regular Session 2013
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: SB279 would raise Alabama's general sales tax gradually to 5% by 2016 and phase out the tax on food by 2016, with a 2017 review to ensure revenue neutrality.
What This Bill Does
The bill increases the state’s general sales tax rate in steps: 4.25% in 2013, 4.5% in 2014, 4.75% in 2015, and 5% in 2016. At the same time, it phases out the sales tax on food by reducing it by one point each year, ending with food tax-exempt in 2016. It defines food and updates rate schedules in the tax code, and it requires a 2017 review to ensure the changes do not reduce total revenue compared to current law. These changes are designed to offset higher general taxes and support state funding as food tax ends.

Who It Affects
General consumers in Alabama who buy goods; the overall cost of most purchases would rise as the general sales tax increases, while food purchases would become tax-free by 2016.
Retailers and businesses that collect and remit sales tax in Alabama; they would apply the new rate schedules for different goods and follow revised collection and allocation rules, including where tax revenue goes.

Key Provisions
General sales tax rate increases: 4.25% effective Sept 1, 2013; 4.5% effective Sept 1, 2014; 4.75% effective Sept 1, 2015; 5% effective Sept 1, 2016.
Food tax phased out: food sales would be taxed at 3% (2013), 2% (2014), 1% (2015), and 0% (exempt) starting Sept 1, 2016.
Food defined: uses USDA/ SNAP definition for food; if SNAP changes, new definition to be provided by the Legislature.
Revenue neutrality review: the Legislature must review the act in the 2017 Regular Session to make adjustments to keep revenue neutral.
Section amendments: the bill would amend Sections 40-23-2 and 40-23-61 to implement the new rates and definitions.

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