Alabama 2023 Regular Session

Alabama Senate Bill SB234 Compare Versions

Only one version of the bill is available at this time.

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1	1	SB234INTRODUCED
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3	3	D19XNT-1
4	4	By Senators Coleman, Figures, Stewart, Coleman-Madison,
5	5	Singleton, Smitherman, Hatcher (Constitutional Amendment)
6	6	RFD: Finance and Taxation Education
7	7	First Read: 20-Apr-23
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13	13	6 D19XNT-1 04/14/2023 JTM (F)JTM 2023-1647
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15	15	SYNOPSIS:
16	16	Under existing law, federal income taxes are
17	17	deductible from gross income prior to computation of
18	18	Alabama income tax liability.
19	19	Also under existing law, the state levies sales
20	20	taxes upon the sale of food items.
21	21	This bill would propose an amendment to the
22	22	Constitution of Alabama of 2022, relating to the
23	23	elimination of the deductibility of federal income
24	24	taxes from Alabama gross income for individual
25	25	taxpayers; and to remove the state sales tax on food
26	26	items.
27	27	A BILL
28	28	TO BE ENTITLED
29	29	AN ACT
30	30	Relating to income tax and sales tax; proposing an
31	31	amendment to Section 211.04 of the Constitution of Alabama of
32	32	2022, to eliminate the state income tax deduction for federal
33	33	income taxes for individual taxpayers; and to eliminate the
34	34	state sales tax on food.
35	35	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
36	36	Section 1. The following amendment to the Constitution
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66	66	of Alabama of 2022, is proposed and shall become valid as a
67	67	part of the constitution when approved by a majority of the
68	68	qualified electors voting thereon and in accordance with
69	69	Sections 284, 285, and 287 of the Constitution of Alabama of
70	70	2022:
71	71	PROPOSED AMENDMENT
72	72	(a) Section 211.04 of the Constitution of Alabama of
73	73	2022, is repealed.
74	74	(b) Effective for all tax years beginning after
75	75	December 31, 2023, federal income taxes shall no longer be
76	76	allowed to be deducted in computing income subject to the
77	77	state individual income tax.
78	78	(c) Beginning January 1, 2024, the sale of food shall
79	79	be exempt from state sales tax. The sale of food to
80	80	corporations, S corporations, and limited liability entities,
81	81	as defined in Section 40-14A-1, Code of Alabama of 1975, shall
82	82	not be exempt from state sales tax. For purposes of this
83	83	amendment, "food" is defined in 7 U.S.C § 2011, et seq., for
84	84	the purposes of the federal Supplemental Nutrition Assistance
85	85	Program, regardless of where or by what means food is sold. In
86	86	the event that the federal Supplemental Nutrition Assistance
87	87	Program definition no longer exists, the Legislature shall
88	88	provide a new definition of "food" by general law.
89	89	Upon ratification of this constitutional amendment, the
90	90	Code Commissioner shall number and place this amendment as
91	91	appropriate in the constitution omitting this instructional
92	92	paragraph and may make the following nonsubstantive revisions:
93	93	change capitalization, spelling, and punctuation for purposes
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123	123	of style and uniformity; correct manifest grammatical,
124	124	clerical, and typographical errors; and correct incorrect
125	125	cross-references.
126	126	Section 2. An election upon the proposed amendment
127	127	shall be held in accordance with Sections 284 and 285 of the
128	128	Constitution of Alabama of 2022, and the election laws of this
129	129	state.
130	130	Section 3. The appropriate election official shall
131	131	assign a ballot number for the proposed constitutional
132	132	amendment on the election ballot and shall set forth the
133	133	following description of the substance or subject matter of
134	134	the proposed constitutional amendment:
135	135	"Proposing an amendment to the Constitution of Alabama
136	136	of 2022, to the "Tax Fairness Amendment of 2023," which would
137	137	remove the four percent state sales tax on food and remove the
138	138	individual income tax deduction for federal income taxes paid
139	139	or accrued.
140	140	Proposed by Act ____. "
141	141	This description shall be followed by the following
142	142	language:
143	143	"Yes( ) No( )."
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