HB307 Alabama 2016 Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

Session

Regular Session 2016

Title

State income tax, federal deduction limited for individual taxpayers, state sales tax on food removed, Amendment 225 (Section 211.04, Recompiled Constitution of Alabama of 1901, as amended), repealed, const. amend.

Summary

HB307 would repeal the federal income tax deduction for Alabama taxpayers and eliminate the state sales tax on food and over-the-counter drugs, with specific definitions and an upcoming ballot vote.

What This Bill Does

The bill would repeal all laws that allow individual taxpayers to deduct federal income taxes on their Alabama tax return, including Amendment 225. It would also start exempting the sale of food and over-the-counter drugs from the state sales tax starting September 1, 2017, while local governments would still collect their portion of the tax. It defines what counts as food and OTC drugs and requires the definition of food to align with federal SNAP definitions, with updates by the Legislature if SNAP changes. Finally, it calls for a statewide vote to approve the constitutional amendment.

Who It Affects

• Individual taxpayers who owe Alabama state income tax: they would lose the deduction for federal income taxes on their state return.
• Consumers buying food and over-the-counter drugs: they would pay no state sales tax on these items starting September 1, 2017 (though local sales taxes would still apply).
• Local governments: they would continue to collect local sales taxes on food and OTC drugs at the same local rate, but the state portion would be eliminated.
• Retailers and sellers: they would stop collecting state sales tax on food and OTC drugs (beginning Sept. 1, 2017) and would continue to handle local taxes as required.
• State budget and policymakers: overall state revenue and tax structure would change due to removal of federal tax deduction and the exemption of essentials from the state sales tax.

Key Provisions

• Repeals all provisions allowing the deduction of federal income taxes by individuals subject to Alabama state income tax, including Amendment 225 (Section 211.04).
• Beginning September 1, 2017, exempts the sale of food and over-the-counter drugs from the state sales tax; local governments keep collecting their local portion of the tax.
• Defines food using the SNAP definition (7 U.S.C. §2011 et seq.) for purposes of the exemption, with a provision to redefine if SNAP changes.
• Defines over-the-counter drugs as non-prescription drugs with required labeling; excludes grooming and hygiene products from the exemption.

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

Subjects

Constitutional Amendments