SB66 - State income tax, federal deduction limited for individual taxpayers, state sales tax on food removed, Amendment 225 (Section 211.04, Recompiled Constitution of Alabama of 1901, as amended), repealed, const. amend.

Sponsor(s): Senator Sanders

Summary/Synopsis: (Constitutional Amendment) This bill would propose an amendment to the Constitution of Alabama of 1901, to repeal Amendment 225 of the Constitution of Alabama of 1901, now appearing as Section 211.04 of the Official Recompilation of the Constitution of Alabama of 1901, as amended; to limit the state income tax deduction for federal income taxes for individual taxpayers; to exempt sales of food and over-the-counter drugs from state sales tax; and to prohibit local governments from levying separate sales taxes only on the sale of food or over-the-counter drugs.
LWVAL Action and Justification: LWVAL is monitoring SB66. League supports removing the sales tax on food. Variations of the legislation have been introduced in previous years; the 2011 version did not advance beyond first reading in either house.

Bill Progress in Legislature: 2/7/2012: First reading and referred to

HB45 - State income tax, federal deduction limited for individual taxpayers, state sales tax on food removed, Amendment 225 (Section 211.04, Recompiled Constitution of Alabama of 1901, as amended), repealed, const. amend.

Sponsor(s): Representative Knight

Summary/Synopsis: (Constitutional Amendment) This bill would propose an amendment to the Constitution of Alabama of 1901, to repeal Amendment 225 of the Constitution of Alabama of 1901, now appearing as Section 211.04 of the Official Recompilation of the Constitution of Alabama of 1901, as amended; and to exempt sales of food and over-the-counter drugs from state sales tax.
Local governments would continue to collect sales taxes on food and over-the-counter drugs at the same rate collected for the local portion of the retail sales tax.
League Action and Justification: LWVAL is monitoring HB45. League supports removing the sales tax on food. This legislation has been introduced in previous years and often undergoes extensive amendment, including versions similar to SB66 above.

Bill Progress in Legislature: 2/7/2012: First reading and referred to

HB389 - Taxation, certain industries sales and use tax exemption repealed, Secs. 40-23-4, 40-23-62 am'd

Sponsor(s): Representative Todd

Summary/Synopsis: Under existing law (Sections 40-23-4 and 40-23-62 of the Code of Alabama 1975,, certain industries are exempt from sales and use taxes. This bill would repeal those exemptions.

The few exemptions that would still be allowed are basically given to various state, county and local government entities, those exempted by the U.S. and Alabama Constitutions, prescription medications for those 65 years of age and older.

League Action and Justification: LWVAL is monitoring HB389. The LWVAL believes: “sales tax exemptions that are designed to benefit specific groups should be reduced.” However, it also supports the continued elimination of the sales tax on prescription drugs regardless of the age of the one filling the prescription.”

Bill Progress in Legislature: 02/23/2012: First reading and referred to