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HB44 - Sales and use tax on food, exempt from, beginning September 1, 2017
Sponsor(s): Representative Knight
Synopsis: 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. Sales of other items are exempt from the taxes.
This bill would exempt sales of food from the sales and use taxes beginning September 1, 2017. It defines food as it is defined in the federal Supplemental Nutrition Assistance Program (NAP) regardless of where or by what means food is sold and gives the legislature the power to define should the NAP no longer exist.
Local governments would continue to collect sales taxes on food at the same rate collected for the local portion of the retail sales tax.
League Action and Justification: Support. League supports a state tax system that is broad, equitable and efficient for the taxpayers of the state and that balances regressive and non-regressive taxes. It also believes: “The present mix of Alabama's taxes should be changed so that there is more reliance on property tax and income tax and less reliance (dependence) on general and selective sales taxes.” Sales taxes are regressive and take a disproportionate share of income from lower income families.
Bill Progress in Legislature: 02/07/2017: First Read and assigned to House committee on Ways & Means Education (W&ME)