Adequate Funding of General Fund
HB42 - Governing body of certain counties or municipalities, authorized to reduce or eliminate their local sales and use tax rate on food
Sponsor(s): Representative England
Synopsis and Analysis: Under current law, the state and many counties and municipalities impose sales or use taxes upon certain persons, firms, or corporations. Sales and use taxes levied by counties and municipalities are collected and administered in the same manner as the state sales and use taxes, except for the tax rate. Items subject to the sales and use tax levied by the state are generally subject to local sales and use taxes. Counties and municipalities do not have the authority to establish a reduced sales tax rate for individual items or exempt items from local sales and use tax.This bill would authorize the local governing body of certain counties or municipalities, to reduce or eliminate their local sales and use tax rate on food after following certain procedures.
This bill offers the hope that some of the burden of taxes on food will be reduced even though they are not eliminated. It only applies to counties or cities who levy local sales taxes on food and who collect this tax themselves.
League Action and Justification: Support. The LWVAL favors an equitable tax structure to fund our government. Because the sales tax on groceries falls disproportionately on low-income Alabamians, the League of Women Voters opposes it in principle. This bill could represent the first step in repealing this unfair sales tax.
Bill Progress in Legislature
Go here to get more information about the bill and changes in the bill as it progresses through the legislature.
HB42 - Governing body of certain counties or municipalities, authorized to reduce or eliminate their local sales and use tax rate on food
Sponsor(s): Representative England
Synopsis and Analysis: Under current law, the state and many counties and municipalities impose sales or use taxes upon certain persons, firms, or corporations. Sales and use taxes levied by counties and municipalities are collected and administered in the same manner as the state sales and use taxes, except for the tax rate. Items subject to the sales and use tax levied by the state are generally subject to local sales and use taxes. Counties and municipalities do not have the authority to establish a reduced sales tax rate for individual items or exempt items from local sales and use tax.This bill would authorize the local governing body of certain counties or municipalities, to reduce or eliminate their local sales and use tax rate on food after following certain procedures.
This bill offers the hope that some of the burden of taxes on food will be reduced even though they are not eliminated. It only applies to counties or cities who levy local sales taxes on food and who collect this tax themselves.
League Action and Justification: Support. The LWVAL favors an equitable tax structure to fund our government. Because the sales tax on groceries falls disproportionately on low-income Alabamians, the League of Women Voters opposes it in principle. This bill could represent the first step in repealing this unfair sales tax.
Bill Progress in Legislature
Go here to get more information about the bill and changes in the bill as it progresses through the legislature.
| Calendar Date | Body | Amd/Sub | Matter | Committee | Nay | Yea | Abstain | Vote |
| 03/05/2019 | H | Read for the first time and referred to the House of Representatives committee on County and Municipal Government | C&MG | |
NOTE: The House County & Municipal Government Committee held a public hearing for HB42 on April 17, 2019 at 1:30 p.m. in Room 429.
Contact information for legislators and committees that might be referenced in this bill:
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Senators Senators Phone Directory Standing Senate Committees
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