SB234INTRODUCED
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D19XNT-1
By Senators Coleman, Figures, Stewart, Coleman-Madison,
Singleton, Smitherman, Hatcher (Constitutional Amendment)
RFD: Finance and Taxation Education
First Read: 20-Apr-23
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6 D19XNT-1 04/14/2023 JTM (F)JTM 2023-1647
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SYNOPSIS:
Under existing law, federal income taxes are
deductible from gross income prior to computation of
Alabama income tax liability.
Also under existing law, the state levies sales
taxes upon the sale of food items.
This bill would propose an amendment to the
Constitution of Alabama of 2022, relating to the
elimination of the deductibility of federal income
taxes from Alabama gross income for individual
taxpayers; and to remove the state sales tax on food
items.
A BILL
TO BE ENTITLED
AN ACT
Relating to income tax and sales tax; proposing an
amendment to Section 211.04 of the Constitution of Alabama of
2022, to eliminate the state income tax deduction for federal
income taxes for individual taxpayers; and to eliminate the
state sales tax on food.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. The following amendment to the Constitution
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of Alabama of 2022, is proposed and shall become valid as a
part of the constitution when approved by a majority of the
qualified electors voting thereon and in accordance with
Sections 284, 285, and 287 of the Constitution of Alabama of
2022:
PROPOSED AMENDMENT
(a) Section 211.04 of the Constitution of Alabama of
2022, is repealed.
(b) Effective for all tax years beginning after
December 31, 2023, federal income taxes shall no longer be
allowed to be deducted in computing income subject to the
state individual income tax.
(c) Beginning January 1, 2024, the sale of food shall
be exempt from state sales tax. The sale of food to
corporations, S corporations, and limited liability entities,
as defined in Section 40-14A-1, Code of Alabama of 1975, shall
not be exempt from state sales tax. For purposes of this
amendment, "food" is defined in 7 U.S.C ยง 2011, et seq., for
the purposes of the federal Supplemental Nutrition Assistance
Program, regardless of where or by what means food is sold. In
the event that the federal Supplemental Nutrition Assistance
Program definition no longer exists, the Legislature shall
provide a new definition of "food" by general law.
Upon ratification of this constitutional amendment, the
Code Commissioner shall number and place this amendment as
appropriate in the constitution omitting this instructional
paragraph and may make the following nonsubstantive revisions:
change capitalization, spelling, and punctuation for purposes
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of style and uniformity; correct manifest grammatical,
clerical, and typographical errors; and correct incorrect
cross-references.
Section 2. An election upon the proposed amendment
shall be held in accordance with Sections 284 and 285 of the
Constitution of Alabama of 2022, and the election laws of this
state.
Section 3. The appropriate election official shall
assign a ballot number for the proposed constitutional
amendment on the election ballot and shall set forth the
following description of the substance or subject matter of
the proposed constitutional amendment:
"Proposing an amendment to the Constitution of Alabama
of 2022, to the "Tax Fairness Amendment of 2023," which would
remove the four percent state sales tax on food and remove the
individual income tax deduction for federal income taxes paid
or accrued.
Proposed by Act ____. "
This description shall be followed by the following
language:
"Yes( ) No( )."
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