1 SB43
2 216233-1
3 By Senator Jones (Constitutional Amendment)
4 RFD: Finance and Taxation Education
5 First Read: 11-JAN-22
Page 0 1 216233-1:n:01/11/2022:LSA-BY/jmb
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8 SYNOPSIS: Under existing law, the state imposes sales
9 or use taxes upon certain persons, firms, or
10 corporations. Sales of certain items are taxed at a
11 reduced rate. Sales of other items are exempt from
12 the taxes.
13 This bill would exempt sales of food from
14 state sales and use taxes beginning January 1,
15 2023.
16 Under existing law, individual income
17 taxpayers are allowed to deduct the amount of
18 federal income taxes paid or accrued within the
19 year.
20 This bill would amend Amendment 225 to the
21 Constitution of Alabama of 1901, now appearing as
22 Section 211.04 of the Official Recompilation of the
23 Constitution of Alabama of 1901, as amended; to
24 limit the amount of federal income taxes paid or
25 accrued an individual income taxpayer can deduct to
26 a maximum of $4,000 for individuals filing as
27 single, head of household, and married filing
Page 1 1 separately and $8,000 for individuals filing as
2 married filing jointly.
3
4 A BILL
5 TO BE ENTITLED
6 AN ACT
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8 To propose an amendment to the Constitution of
9 Alabama of 1901, as amended; to exempt sales of food from
10 state sales and use taxes; and to amend Amendment 225 to the
11 Constitution of Alabama of 1901, now appearing as Section
12 211.04 of the Official Recompilation of the Constitution of
13 Alabama of 1901, as amended; limiting the amount of federal
14 income taxes paid or accrued an individual income taxpayer can
15 deduct.
16 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
17 Section 1. The following amendment to the
18 Constitution of Alabama of 1901, as amended, is proposed and
19 shall become valid as a part thereof when approved by a
20 majority of the qualified electors voting thereon and in
21 accordance with Sections 284, 285, and 287 of the Constitution
22 of Alabama of 1901, as amended:
23 PROPOSED AMENDMENT
24 Part I. (a) For purposes of this constitutional
25 amendment, the following term is defined as follows:
26 FOOD. Food as defined in 7 U.S.C ยง 2011, et seq.,
27 for the purposes of the federal Supplemental Nutrition
Page 2 1 Assistance Program regardless of where or by what means food
2 is sold. In the event that the federal Supplemental Nutrition
3 Assistance Program definition no longer exists, the
4 Legislature shall provide a new definition of food by general
5 law.
6 (b) Notwithstanding any other provision of law, for
7 taxable periods beginning on and after January 1, 2023, gross
8 receipts from the sale or use of food shall be exempt from
9 state sales and use taxes. Local governments shall continue to
10 collect sales taxes on food at the same rate collected for the
11 local portion of the retail sales tax.
12 Part II. Amendment 225 of the Constitution of
13 Alabama of 1901, now appearing as Section 211.04 of the
14 Official Recompilation of the Constitution of Alabama of 1901,
15 is hereby amended to read as follows:
16 "Amendment No. 225
17 "In computing net income for state income tax
18 purposes for the calendar year 1965 and each year thereafter,
19 a resident individual taxpayer shall be allowed to deduct from
20 his gross income the amount of federal income tax paid or
21 accrued within the taxable year. A nonresident individual
22 income taxpayer shall be allowed to deduct only that amount of
23 federal income tax paid or accrued in the taxable year on
24 income received from sources within the state. For tax years
25 that begin after December 31, 2022, an individual taxpayer
26 filing as single, head of household, and married filing
27 separately shall not deduct more than four thousand dollars
Page 3 1 ($4,000) in federal income tax paid or accrued within the
2 taxable year. For tax years that begin after December 31,
3 2022, an individual taxpayer filing as married filing jointly
4 shall not deduct more than eight thousand dollars ($8,000) in
5 federal income taxes paid or accrued within the taxable year."
6 Section 2. An election upon the proposed amendment
7 shall be held in accordance with Sections 284 and 285 of the
8 Constitution of Alabama of 1901, now appearing as Sections 284
9 and 285 of the Official Recompilation of the Constitution of
10 Alabama of 1901, as amended, and the election laws of this
11 state.
12 Section 3. The appropriate election official shall
13 assign a ballot number for the proposed constitutional
14 amendment on the election ballot and shall set forth the
15 following description of the substance or subject matter of
16 the proposed constitutional amendment:
17 "Proposing an amendment to the Constitution of
18 Alabama of 1901, to exempt sales of food from state sales and
19 use taxes; to amend Amendment 225 of the Constitution of
20 Alabama of 1901, now appearing as Section 211.04 of the
21 Official Recompilation of the Constitution of Alabama of 1901,
22 as amended, to limit the amount an individual taxpayer filing
23 as single, head of household, and married filing separately
24 can deduct in federal income taxes paid to a maximum of four
25 thousand dollars ($4,000); and to limit the amount an
26 individual taxpayer filing as married filing jointly can
Page 4 1 deduct in federal income taxes paid to a maximum of eight
2 thousand dollars ($8,000)."
3 "Proposed by Act ________."
4 This description shall be followed by the following
5 language:
6 "Yes ( ) No ( )."
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