HB184 Alabama 2022 Session

Summary

Primary Sponsor

Mary MooreRepresentative

Democrat

Session

Regular Session 2022

Title

Taxation, sales and use tax on food phased out, exempt beginning September 1, 2025.

Summary

HB184 would gradually eliminate Alabama's state sales and use tax on food, reducing it each year and fully exempting food from the tax by September 1, 2025, while local food taxes remain in place.

What This Bill Does

It lowers the state tax on food to 3% starting September 1, 2022, then to 2% on September 1, 2023, then to 1% on September 1, 2024, and finally exempts food from the state tax beginning September 1, 2025. Local governments would continue collecting the local portion of the food tax at the same rate. The bill defines food for tax purposes using the SNAP program definition, with a general-law definition to be provided if SNAP changes. The stated intent is that taxing food places a burden on taxpayers, especially the less fortunate.

Who It Affects

• Households and individuals who purchase food (tax burden reduced over time and ultimately eliminated for state tax).
• Low- and moderate-income households (the bill notes a larger burden on the less fortunate and aims to ease it).
• Food retailers/sellers (they would collect and remit the state and local food taxes as rates change).
• Local governments (they continue to collect the local portion of the food tax at the existing local rate).

Key Provisions

• Phase-in of state food tax rates: 3% starting Sept. 1, 2022; 2% starting Sept. 1, 2023; 1% starting Sept. 1, 2024; 0% exemption starting Sept. 1, 2025.
• Food will be exempt from the state sales and use tax beginning Sept. 1, 2025.
• Local governments shall continue to collect the food tax at the same rate as the local portion of the retail tax.
• Definition of FOOD follows the SNAP program definition for purposes of the bill; if SNAP is no longer in effect, a new general-law definition will be provided.

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