HB130 Alabama 2014 Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

Session

Regular Session 2014

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sales tax on food removed, Amendment 225 (Section 211.04, Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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

HB130 would repeal Amendment 225 and remove the state sales tax on food and over-the-counter drugs, while keeping local sales taxes in place.

What This Bill Does

Repeals Amendment 225 of the Alabama Constitution. Starting September 1, 2014, the state sales tax would not be charged on food and over-the-counter drugs. Local governments would continue to collect sales taxes on those items at the same local rates. Defines which items count as food and as over-the-counter drugs using federal definitions and labeling rules.

Who It Affects

• Consumers: would pay less or no state sales tax on food and over-the-counter drugs.
• Local governments: would keep collecting local taxes on these items but lose the state portion of the tax revenue.
• Retailers/businesses: would collect and remit only local sales taxes on food and OTC drugs; no state tax collected for these items.
• People buying grooming and hygiene products: not affected, as these items remain outside the exemption.

Key Provisions

• Repeals Amendment 225 (Section 211.04) of the Alabama Constitution.
• Beginning September 1, 2014, exempts the sale of food and over-the-counter drugs from the state sales tax.
• Local governments continue to collect sales taxes on food and OTC drugs at the same local rates.
• Food is defined by federal SNAP standards; over-the-counter drugs are defined by non-prescription status and labeling requirements; grooming/hygiene products are excluded.
• A statewide election is required to approve the amendment.

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