HB322 Alabama 2019 Session

Summary

Primary Sponsor

Laura HallRepresentative

Democrat

Session

Regular Session 2019

Title

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

Summary

HB 322 would exempt the state sales and use tax on food starting September 1, 2019, while local food taxes would continue to be collected by local governments.

What This Bill Does

Starting with the 2019 tax period, the state will not apply its sales and use tax to the sale or use of food. Local governments will still collect their portion of food taxes at the same local rates. Food is defined to match the SNAP program definitions, with a general-law definition used if SNAP changes; the act becomes effective once the governor signs it.

Who It Affects

• Consumers/households in Alabama who buy food — they would no longer pay the state sales and use tax on most food purchases, though local taxes would remain in effect.
• State and local tax authorities and retailers — the state would lose revenue from the food tax, local governments would keep collecting their local food taxes, and retailers would implement the exemption at the point of sale.

Key Provisions

• Exempts gross receipts from the sale or use of food from state sales and use taxes for taxable periods beginning September 1, 2019.
• Local governments shall continue to collect sales taxes on food at the same rate as the local portion of the retail sales tax.
• Defines food to align with the SNAP program (7 U.S.C. §2011 et seq.); if SNAP definition ceases to exist, the Legislature will define food by general law.
• The act becomes effective immediately following its passage and approval by the Governor.

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