HB306 Alabama 2016 Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

Session

Regular Session 2016

Title

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

Summary

HB306 would exempt food from Alabama's state sales and use taxes starting September 1, 2016, while local food taxes would stay in place.

What This Bill Does

The bill would make the gross receipts from the sale or use of food exempt from state sales and use taxes for taxable periods beginning September 1, 2016. Local governments would continue to collect sales taxes on food at the same local rate. Food is defined by SNAP (federal) terms, and if that SNAP definition changes, the Legislature would redefine it by general law. The act becomes effective immediately after the governor signs it, with the exemption applying to future tax periods.

Who It Affects

• Consumers/households in Alabama: will not pay state sales and use tax on food starting September 1, 2016, though local food taxes would still apply at the local rate.
• State and local tax jurisdictions: the state would lose revenue from the food tax, while local governments would continue to collect their local portion of the food tax at the existing rate.

Key Provisions

• Exempts the gross receipts from the sale or use of food from state sales and use taxes for taxable periods beginning September 1, 2016.
• Local governments shall continue to collect food sales taxes at the same rate as the local portion of the retail sales tax.
• Defines 'FOOD' using the SNAP definition in federal law; if SNAP definition changes, the Legislature may define it by general law.
• Effective date: becomes law immediately after passage and governor's approval, with the exemption applying to periods starting September 1, 2016.

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