SB287 Alabama 2014 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2014

Title

State sales and use tax increased, phase-in period, sales and use tax on food phased out, exempt by 2017, counties and municipalities prohibited from increasing sales tax on food, Secs. 40-23-2, 40-23-61 am'd.

Description

Under existing law, the state imposes sales or use taxes upon certain persons, firms, or corporations. Sales of certain items are taxed at a reduced rate. Sales of other items are exempt from the taxes.

This bill would increase the state sales and use tax general rate to four and one-quarter percent on September 1, 2014, to four and one-half percent on September 1, 2015, to four and three-quarters percent on September 1, 2016, and to five percent on September 1, 2017.

This bill would phase out the state sales and use taxes on food over a four-year period by reducing the rates by one percentage point per year beginning September 1, 2014.

This bill would phase out the state sales and use taxes on food sold through coin-operated dispensing machines over a three-year period by reducing the rates by one percentage point per year beginning September 1, 2015.

This bill would exempt sales of food, including food sold through coin-operated dispensing machines, from the sales and use taxes beginning September 1, 2017.

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Subjects

Taxation