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Bill > HB386


AL HB386

AL HB386
Sales and use tax on food, state rate reduced, counties and municipalities authorized to reduce


summary

Introduced
03/05/2025
In Committee
04/30/2025
Crossed Over
03/18/2025
Passed
05/06/2025
Dead
Signed/Enacted/Adopted
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)

bill text


bill summary

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bill summary

Document Type Source Location
State Bill Page https://alison.legislature.state.al.us/bill-search
BillText https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB386-enr.pdf
Senate Orr motion to Adopt - Adopted Roll Call 975 L5P66WW-1 https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/L5P66WW-1.pdf
Senate Finance and Taxation Education Finance and Taxation Education 1st Substitute ZQ22BKR-1 https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/ZQ22BKR-1.pdf
Fiscal Note - Reported by Second Chamber Committee https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/FiscalNotes/FN-I33UI6W-4.pdf
Fiscal Note - Passed First Chamber https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/FiscalNotes/FN-I33UI6W-3.pdf
BillText https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB386-eng.pdf
House Ways and Means Education Ways and Means Education 1st Amendment I332X6W-1 https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/I332X6W-1.pdf
House Ways and Means Education Reported Out of Committee House of Origin 9J9WTBB-1 https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/9J9WTBB-1.pdf
Fiscal Note - Reported by First Chamber Committee https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/FiscalNotes/FN-I33UI6W-2.pdf
BillText https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB386-int.pdf
Fiscal Note - Introduced https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/FiscalNotes/FN-I33UI6W-1.pdf
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