The DMA Way

Proposal to Give Alabama Locals Leeway on Food and Beverage

by DMA Staff | Apr 01, 2019
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Many states have a reduced or eliminated sales tax rate on food. Alabama could allow more locals the ability to do the same. Introduced on March 5, HB 42 would give local governments the ability to reduce or eliminate the sales tax rate on food. Food would be anything defined as “any food or food product for home consumption except alcoholic beverages, tobacco, hot foods or hot food products ready for immediate consumption.”

Currently, locally administered taxes in Alabama must follow state rules on items subject to sales and use tax. 

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