HB238 Alabama 2018 Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

Session

Regular Session 2018

Title

Sales and use tax on food, exempt from, beginning September 1, 2018

Summary

HB 238 would remove the state sales and use tax on food starting September 1, 2018, while local food taxes would continue to be collected.

What This Bill Does

The bill grants an exemption from state sales and use taxes for the sale or use of food for periods beginning September 1, 2018. It uses the SNAP program's definition of food, with a provision to redefine food by general law if the SNAP definition changes. Local governments would still collect the local portion of the food tax at the current rate. The exemption applies notwithstanding other laws and becomes effective once the governor signs it or it becomes law.

Who It Affects

• State government: would lose state revenue from the food tax starting September 1, 2018.
• Consumers: would pay no state tax on food purchases; local food taxes would still apply.
• Retailers/grocers: would stop collecting state tax on food but would continue to collect local sales tax on food at the existing local rate.
• Local governments: would continue to collect the local portion of the food tax at the same rate.

Key Provisions

• Definition of 'food' follows the SNAP program definition (7 U.S.C. §2011 et seq); if SNAP definition disappears, the Legislature will define food by general law.
• Notwithstanding any other provision of law, gross receipts from the sale or use of food are exempt from state sales and use taxes for taxable periods beginning on and after September 1, 2018.
• Local governments shall continue to collect sales taxes on food at the same rate as the local portion of the retail sales tax.
• The act becomes effective immediately following its passage and approval by the Governor, or otherwise becoming a 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