HB174 Alabama 2022 Session

Summary

Primary Sponsor

Mike Holmes

Republican

Session

Regular Session 2022

Title

Sales and use tax on food, exempt from, beginning September 1, 2022.

Summary

HB174 would start exempting food from the state sales and use taxes starting September 1, 2022, while local sales taxes on food would stay in place.

What This Bill Does

The bill exempts the gross receipts from the sale or use of food from Alabama's state sales and use taxes for periods beginning Sept 1, 2022. Local governments would continue to collect their share of sales tax on food at the same local rate. It uses the SNAP program's definition of 'food' for tax purposes, and if that definition changes, the Legislature would define it by general law. The act becomes law after the governor signs it.

Who It Affects

• Alabama consumers who buy food pay no state sales or use tax on most food starting Sept 1, 2022
• Local governments that collect sales tax on food would continue to collect at the same local rate
• Food retailers and sellers must apply the exemption for state tax starting Sept 1, 2022

Key Provisions

• Exempts gross receipts from sale or use of food from the state sales and use taxes beginning Sept 1, 2022
• Local food sales taxes remain in effect at the same local rate as before
• Defines 'food' using the federal SNAP program definition; Legislature to define otherwise by general law if SNAP definition ends
• Effective immediately upon governor's approval

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