SB471 Alabama 2014 Session

Summary

Primary Sponsor

Bryan Taylor

Republican

Session

Regular Session 2014

Title

Taxation, phase-out sales and use tax on food, increase state tax over four-year period on cigarettes, const. amend.

Summary

SB471 would amend the Alabama Constitution to phase out the state sales tax on food over four years and raise the cigarette tax in steps through 2017, pending voter approval.

What This Bill Does

It sets a four-year plan to remove the state sales and use tax on food and defines what counts as food for tax purposes (excluding candy and soft drinks). The food tax would be 3% starting Jan 1, 2015, then drop to 2% on Sep 1, 2015, 1% on Sep 1, 2016, and be fully exempt on Sep 1, 2017. It also increases the cigarette tax in four steps: 33.75 mills Jan 1, 2015; 46.25 mills Sep 1, 2015; 58.75 mills Sep 1, 2016; and 71.25 mills Sep 1, 2017. Additionally, it specifies that revenue reductions from this change are not counted toward the Education Trust Fund’s annual appropriation cap, and the amendment would need voter approval at the next statewide election.

Who It Affects

• Consumers who purchase food in Alabama would pay less state sales tax on food each year, eventually paying no state tax on food by September 2017.
• People who buy cigarettes in Alabama would face higher cigarette taxes in four stepped increases through September 2017.

Key Provisions

• Phased reduction of the state sales and use tax on food: 3% (Jan 1, 2015); 2% (Sep 1, 2015); 1% (Sep 1, 2016); 0% (Sep 1, 2017).
• Phased increases in the cigarette tax: 33.75 mills (Jan 1, 2015); 46.25 mills (Sep 1, 2015); 58.75 mills (Sep 1, 2016); 71.25 mills (Sep 1, 2017).
• Definitions for terms: Food is SNAP-like food excluding candy and soft drinks; Candy and Soft Drinks have separate definitions; Sales Tax and Use Tax definitions.
• Revenue implications: Reductions in Sales/Use Tax revenue from the amendment are not counted toward the Education Trust Fund's annual appropriation cap.
• Election requirement: The amendment must be approved by voters at the next statewide election.

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