HB442 Alabama 2021 Session

Summary

Primary Sponsor

Mary MooreRepresentative

Democrat

Co-Sponsors

Barbara Bigsby BoydNapoleon BracyPrince ChestnutAdline ClarkeMerika ColemanAnthony DanielsBarbara DrummondDavid FaulknerBerry ForteJuandalynn GivanJeremy GrayLaura HallRolanda HollisRalph HowardThomas JacksonSam JonesKelvin LawrenceArtis McCampbellThad McClammyTaShina MorrisNeil Rafferty

Session

Regular Session 2021

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

HB442 would phase out the state sales and use tax on food, reducing it in steps from 3% to 0% by 2025.

What This Bill Does

It lowers the tax on food gradually: 3% starting Oct 1, 2021; 2% starting Oct 1, 2022; 1% starting Oct 1, 2023; and an exemption starting Oct 1, 2025. This means food purchases would eventually be taxed at zero state rate. It ties the definition of food to the SNAP program, and if SNAP’s definition changes or ends, the Legislature would define food by general law.

Who It Affects

• Consumers who buy food will pay less state sales tax over time, ending in an exemption in 2025.
• State and local government revenue from food sales will decrease as the tax is phased out, potentially reducing funds for programs and services.

Key Provisions

• Phase-out schedule: 3% on food starting Oct 1, 2021; 2% starting Oct 1, 2022; 1% starting Oct 1, 2023; exemption starting Oct 1, 2025.
• Definition of food uses the SNAP program's definition for purposes of the tax; if SNAP definition ceases to exist, the Legislature will define food by general law.
• Effective date: the act becomes law on the first day of the third month after governor approval; tax rate changes apply to taxable periods as specified.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation