HB173 Alabama 2022 Session

Summary

Primary Sponsor

Mike Holmes

Republican

Session

Regular Session 2022

Title

Sales and use tax on food, exemption established, income tax deduction, deduction based on federal income tax paid, limit established, const. amend.

Description

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 state sales and use taxes beginning January 1, 2023.

Under existing law, individual income taxpayers are allowed to deduct the amount of federal income taxes paid or accrued within the year.

This bill would amend Amendment 225 to the Constitution of Alabama of 1901, now appearing as Section 211.04 of the Official Recompilation of the Constitution of Alabama of 1901, as amended; to limit the amount of federal income taxes paid or accrued an individual income taxpayer can deduct to a maximum of $4,000 for individuals filing as single, head of household, and married filing separately and $8,000 for individuals filing as married filing jointly.

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Subjects

Constitutional Amendments