SB232 Alabama 2017 Session

Summary

Primary Sponsor

Hank Sanders

Democrat

Session

Regular Session 2017

Title

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over-the-counter drugs removed, Amendment 225 (Section 211.04, Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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

Summary

SB232 would repeal Amendment 225 and replace Alabama tax rules by restricting federal tax deductions for individuals and by exempting food and over-the-counter drugs from the state sales tax, while banning local taxes that target only those items.

What This Bill Does

It repeals Amendment 225 and sets new rules for a deduction of federal income taxes paid or accrued for individual taxpayers, with income-based limits. It starts an exemption of the sale of food and over-the-counter drugs from the state sales tax beginning January 1, 2018, with local governments allowed to collect the local portion of sales tax but barred from creating separate taxes that apply only to food or OTC drugs. It defines what counts as food (SNAP definition) and OTC drugs (non-prescription drugs with specific labeling).

Who It Affects

• Individual income taxpayers in Alabama, with deductions for federal taxes changing based on filing status and adjusted gross income.
• Consumers purchasing food and over-the-counter drugs, who would pay no state sales tax on those items (though local taxes may still apply).
• Local governments in Alabama, which would be prohibited from imposing separate sales taxes on food or OTC drugs.

Key Provisions

• Repeals Amendment 225 of the Alabama Constitution (Section 211.04).
• Creates a new deduction for federal income taxes paid or accrued for individual taxpayers, with specific AGI-based limits and phase-outs for higher income levels.
• Beginning January 1, 2018, exempts the sale of food and over-the-counter drugs from state sales tax and prohibits local governments from levying separate taxes on those items; defines food and OTC drugs and gives the Legislature authority to redefine 'food' if the SNAP definition changes.

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