House Bill 647 Alabama 2026 Session

Summary

Primary Sponsor

Mike ShawRepresentative

Republican

Session

2026 Regular Session

Title

Taxation; to eliminate the sales tax on food over a four year period

Summary

HB647 would progressively eliminate the state sales tax on food by 2029 and let local governments do the same for local food taxes.

What This Bill Does

The bill cuts the state tax on food in steps: from 3% to 2% on Sept 1, 2025; to 1.5% on Sept 1, 2026; to 1% on Sept 1, 2027; to 0.5% on Sept 1, 2028; and then exemption from Sept 1, 2029. It adds a provision to exempt food from state sales tax starting Sept 1, 2029. It also lets counties and municipalities exempt food from local sales taxes starting Sept 1, 2029. The act becomes effective Sept 1, 2026, with these changes phased in on the dates above.

Who It Affects

• Consumers who buy food in Alabama will pay lower state food taxes over time and eventually pay no state tax on food starting in 2029.
• Retailers and local governments that collect food taxes will implement the phased rate changes, and starting in 2029 local governments may exempt food from local taxes, affecting revenue and administration.

Key Provisions

• Phased reduction of the state sales tax on food: 3% to 2% (Sept 1, 2025); 2% to 1.5% (Sept 1, 2026); 1.5% to 1% (Sept 1, 2027); 1% to 0.5% (Sept 1, 2028).
• Beginning Sept 1, 2029, food becomes exempt from state sales and use tax (40-23-4.11).
• Counties and municipalities may exempt food from local sales and use taxes beginning Sept 1, 2029 (40-23-40).
• The act becomes effective Sept 1, 2026 (Sec 3).

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 31, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue