HB28 Alabama 2015 1st Special Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

Session

First Special Session 2015

Title

Sales and use tax on food, exempt from, beginning September 1, 2015

Summary

HB28 would exempt the sale and use of food from Alabama's state sales and use taxes starting September 1, 2015, while letting local governments keep collecting their local food taxes.

What This Bill Does

The bill removes the state sales and use taxes on food for periods beginning September 1, 2015. Local governments will continue to collect their own food taxes at the same rate as the local portion of the retail tax. It defines what counts as 'food' based on the federal SNAP program definition, with a provision to redefine by general law if SNAP changes. It also clarifies how 'sales tax' and 'use tax' are defined under state law.

Who It Affects

• Consumers who buy food: starting September 1, 2015, they would not pay state sales or use tax on food (though local taxes may still apply as determined by local rules).
• Food retailers and local governments: they will no longer collect state tax on food, but must continue to collect local sales taxes on food at the same local rate as used for the local portion of the retail tax.

Key Provisions

• Section 1 defines terms: 'FOOD' matches the SNAP definitions in federal law; 'SALES TAX' and 'USE TAX' are defined by Alabama code.
• Section 2 grants a state-level exemption for gross receipts from the sale or use of food from state sales and use taxes for taxable periods starting September 1, 2015; local governments keep collecting local food taxes at the same rate as their portion of the retail tax.
• Section 3 states the act becomes effective immediately after passage and governor approval, with the exemption applying to periods beginning September 1, 2015; if SNAP definitions change, the legislature will redefine 'food' by general law.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation