HB621 Alabama 2019 Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

Regular Session 2019

Title

State sales and use tax increased, phase-in period, sales and use tax on food phased out, exempt by 2007, counties and municipalities prohibited from increasing sales tax on food, Secs. 40-23-2, 40-23-61 am'd.

Summary

HB621 would remove the state sales and use tax on food, making food purchases tax-free starting September 1, 2020.

What This Bill Does

It exempts gross receipts from the sale or use of food from state sales and use taxes for taxable periods beginning September 1, 2020. It defines food using the federal WIC packaging definition, with a provision to create a new definition if WIC changes. It uses the existing definitions of sales tax and use tax for the purposes of this act. The act becomes law when signed by the Governor, with the exemption applying to periods on or after September 1, 2020.

Who It Affects

• Consumers in Alabama who purchase food would no longer pay state sales and use tax on those food purchases starting September 1, 2020.
• Food retailers and sellers in Alabama would no longer collect state sales and use tax on food, affecting pricing and tax reporting.

Key Provisions

• Exempts gross receipts from the sale or use of food from the state sales and use taxes for taxable periods beginning September 1, 2020.
• Defines 'food' using the federal WIC packaging definition, with a plan to redefine by general law if WIC changes.
• Affirms the terms 'Sales Tax' and 'Use Tax' as used in the act refer to the state taxes currently in law.
• States the act becomes effective upon the Governor's approval, with the food exemption applying to periods beginning September 1, 2020.

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