HB 621

Under existing law, the state imposes sales or use taxes upon certain persons, firms, or corporations. Sales of certain items are taxed at a reduced rate. Sales of other items are exempt from the taxes

This bill would exempt sales of food from the sales and use taxes beginning September 1, 2020

To exempt sales of food from the sales and use taxes beginning September 1, 2020.

Section 1

LEGISLATIVE INTENT. The Legislature hereby finds that the requirement to pay sales tax on food places a burden on all taxpayers in the state, especially the less fortunate.

Section 2

For purposes of Section 2 of this act, the following terms are defined as follows: (1) FOOD. Food packages as defined in 7 C.F.R §246.10, as may be amended from time to time, for the purposes of the federal Special Supplemental Nutrition Program for Women, Infants and Children (WIC) regardless of where or by what means food is sold. In the event that the federal Supplemental Nutrition Program for Women, Infants and Children (WIC) definition no longer exists, the Legislature shall provide a new definition of food by general law. (2) SALES TAX. The tax levied in Section 40-23-2, Code of Alabama 1975, on the gross sales or gross receipts from the sale of tangible personal property. (3) USE TAX. The tax levied in Section 40-23-61, Code of Alabama 1975, on the storage, use, or other consumption of tangible personal property in Alabama.

Section 3

Notwithstanding any other provision of law, for taxable periods beginning on and after September 1, 2020, the gross receipts from the sale or use of food shall be exempt from the state sales and use taxes.

Section 4

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming a law.