HB517 Alabama 2022 Session

Summary

Primary Sponsor

Dexter Grimsley

Democrat

Session

Regular Session 2022

Title

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

Summary

HB517 would temporarily exempt the state sales and use tax on food from July 1, 2022 through December 31, 2022.

What This Bill Does

The bill excludes the gross receipts from the sale or use of food from the state sales and use taxes during the specified period. Local governments would continue to collect food taxes at the same local rate, so the exemption applies only to state taxes. The definition of 'food' follows the SNAP program, and if that definition changes in the future, the Legislature will provide a new definition by general law. The exemption takes effect immediately after the Governor signs the bill into law.

Who It Affects

• Consumers who buy food during July 1, 2022 to December 31, 2022 will not pay state sales tax on food purchases.
• Food retailers and local governments, who must implement the exemption at the state level while local food taxes continue to be collected as before.

Key Provisions

• Exempts gross receipts from the sale or use of food from state sales and use taxes for July 1, 2022 through December 31, 2022.
• Local governments will continue to collect food taxes at the same local rate as the local portion of the retail sales tax.
• Defines 'food' according to the SNAP program definitions; if SNAP changes or ends, the Legislature will establish a new definition by general law.
• The act becomes effective immediately upon passage and approval by the Governor.

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