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Bill > HB386
AL HB386
AL HB386Sales and use tax on food, state rate reduced, counties and municipalities authorized to reduce
summary
Introduced
03/05/2025
03/05/2025
In Committee
04/30/2025
04/30/2025
Crossed Over
03/18/2025
03/18/2025
Passed
05/06/2025
05/06/2025
Dead
Signed/Enacted/Adopted
05/12/2025
05/12/2025
Introduced Session
2025 Regular Session
Bill Summary
Sales and use tax on food, state rate reduced, counties and municipalities authorized to reduce
AI Summary
This bill reduces the state sales tax rate on food in Alabama, with a phased approach to tax reduction. Specifically, the bill will lower the state sales tax on food from four percent to three percent on September 1, 2023, and then to two percent on September 1, 2025. The bill also modifies how counties and municipalities can set their local sales tax rates on food, establishing that the rate will be based on the general sales tax rate in effect on June 15, 2023. Local governments are now authorized to reduce their food sales tax rates, with some restrictions, and they can subsequently increase the rate back up to the June 15, 2023 level. The legislation ensures that no additional county or municipal sales taxes on food can be levied beyond what was in place on that date. The changes to the sales tax on food apply to both sales tax (when purchasing food) and use tax (when bringing food into the state for personal consumption). The bill is set to become effective on June 1, 2025, providing a clear timeline for implementation of these tax rate changes.
Committee Categories
Budget and Finance
Sponsors (49)
Danny Garrett (R)*,
Alan Baker (R),
Bryan Brinyark (R),
Mack Butler (R),
Jim Carns (R),
Brock Colvin (R),
Susan DuBose (R),
Brett Easterbrook (R),
Tracy Estes (R),
Jennifer Fidler (R),
Mark Gidley (R),
Donna Givens (R),
Matthew Hammett (R),
Ben Harrison (R),
Frances Holk-Jones (R),
Leigh Hulsey (R),
Steve Hurst (R),
Reed Ingram (R),
Jamie Kiel (R),
Mike Kirkland (R),
Bill Lamb (R),
Nathaniel Ledbetter (R),
Craig Lipscomb (R),
James Lomax (R),
Joe Lovvorn (R),
Rhett Marques (R),
Arnold Mooney (R),
Parker Moore (R),
Kenneth Paschal (R),
Phillip Pettus (R),
Rick Rehm (R),
Phillip Rigsby (R),
Chad Robertson (R),
Jeana Ross (R),
Chris Sells (R),
Mike Shaw (R),
Mark Shirey (R),
Van Smith (R),
Jeff Sorrells (R),
Scott Stadthagen (R),
David Standridge (R),
Jerry Starnes (R),
Troy Stubbs (R),
Allen Treadaway (R),
Bubba Underwood (R),
Ritchie Whorton (R),
Margie Wilcox (R),
Matthew Woods (R),
Ernie Yarbrough (R),
Last Action
Enacted (on 05/12/2025)
Official Document
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