HB570 Alabama 2015 Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

Session

Regular Session 2015

Title

Sales and use tax on food, phase out over a four-year period

Summary

HB570 would gradually eliminate the state sales and use tax on food over four years, ending in a full exemption in 2018.

What This Bill Does

It sets a phased reduction of the state tax on food: 3% starting September 1, 2015, 2% starting September 1, 2016, 1% starting September 1, 2017, and a full exemption starting September 1, 2018. Local (county and city) food taxes would remain unchanged. The definition of food uses the SNAP program definition for now, with a plan to define it by law if the SNAP definition changes.

Who It Affects

• Consumers purchasing food would pay less state tax on food each year, until the tax is fully exempt in 2018.
• Retailers and sellers of food would collect a smaller state tax on food from 2015 through 2017 and none from 2018 onward.
• Local governments would continue to collect their own local food taxes at the existing local rates.

Key Provisions

• Phase-out schedule: 3% state tax on food for taxable periods beginning after September 1, 2015; 2% for taxable periods after September 1, 2016; 1% for taxable periods after September 1, 2017; and exemption from state tax starting September 1, 2018.
• Local sales taxes on food remain in place and are not changed by this act.
• Definition of 'food' follows the SNAP program definition for purposes of the tax; if SNAP changes or ends, the Legislature must redefine 'food' by general law.
• Effective date: the act becomes effective immediately upon passage and approval by the Governor.

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