SB234 Alabama 2023 Session

Summary

Primary Sponsor

Merika ColemanSenator

Democrat

Session

Regular Session 2023

Title

Relating to income tax and sales tax; proposing an amendment to Section 211.04 of the Constitution of Alabama of 2022, to eliminate the state income tax deduction for federal income taxes for individual taxpayers; and to eliminate the state sales tax on food.

Summary

SB234 would change Alabama's tax rules by eliminating the federal income tax deduction and removing the state sales tax on food.

What This Bill Does

It repeals the rule that allows individuals to deduct federal income taxes from their Alabama taxable income, effective for tax years after 2023. Beginning January 1, 2024, the sale of food would be exempt from state sales tax for individuals, reducing the cost of food purchases to households. However, sales tax on food would still apply to purchases by businesses such as corporations, S corporations, and LLCs; and 'food' is defined by the federal SNAP program, with a provision to define it differently by general law if SNAP changes.

Who It Affects

• Individual taxpayers and households: would no longer be allowed to deduct federal income taxes when computing Alabama income tax.
• Consumers purchasing food for personal use: starting in 2024, food sold to individuals would be exempt from state sales tax.
• Businesses (corporations, S corporations, and LLCs): would continue to pay state sales tax on food purchases, since those sales would not be exempt for business purchases.

Key Provisions

• Repeals Section 211.04 of the Alabama Constitution to remove the federal income tax deduction from Alabama taxable income.
• Effective for tax years after December 31, 2023, federal income taxes shall no longer be deductible when computing the state individual income tax.
• Beginning January 1, 2024, the sale of food shall be exempt from state sales tax for individuals, while sales to corporations, S corporations, and LLCs remain taxable.
• Defines 'food' using the federal SNAP program definition; if SNAP definition changes or ends, the Legislature will provide a new definition by general law.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.