Alabama HB336 would eliminate the state sales and use tax on food on September 1, 2026, and allow local governments to adopt companion exemptions for.
Alabama HB336 amends the state's sales and use tax code to exempt food from state sales tax, effective September 1, 2026. The bill also allows local governments to adopt their own exemptions for local sales and use taxes on food. The tax on food will be reduced to two percent on September 1, 2025. Local governments can choose to exempt food from local sales and use taxes, but cannot increase the rate beyond the state's two percent rate. The bill does not change the tax rates on other items.
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