HB396 Alabama 2023 Session

Summary

Primary Sponsor

Arnold Mooney Representative

Republican

Session

Regular Session 2023

Title

To amend Sections 40-23-1 and 40-23-4, as last amended by Act 2022-291, Act 2022-293, Act 2022-373, and Act 2022-199, 2022 Regular Session, Code of Alabama 1975, related to sales taxes; to define food and exempt sales of food from state sales and use taxes; to establish the local sales tax rate on food for purposes of county and municipal sales and use taxes as the existing general or retail local sales tax rate; and to allow a local governing body to reduce the local sales tax rate or exempt food from local sales and use taxes.

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.

Food is not a defined term and is taxed at the general rate. Sales of other items are exempt from the taxes.

This bill would define food for purposes of sales and use taxes and exempt sales of food from state sales and use taxes beginning September 1, 2024.

This bill would also establish the sales tax rate on food for purposes of county and municipal sales and use taxes as the existing general or retail local sales tax rate on the effective date of this act and allow the local governing body to reduce the local sales tax rate or exempt food from local sales and use taxes.

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Subjects

Relating to sales and use tax; to define food; to exempt food from sale and use tax; to provide for local sale tax on food