The Food Tax Bill
Removing Alabama's Sales Tax on Groceries
  1. Exempts sales of food from the state sales tax (4%).
  2. Proposes a constitutional amendment, the “Tax
    Fairness Amendment of 2009”, which must be
    approved by voters in a state-wide election.
  3. Repeals Amendment 225 of the Alabama
    Constitution, which allows taxpayers to fully deduct
    federal income taxes paid when computing state
    income tax.

           Amendment 225 Ratified - Deduction of Federal Income Tax        
          From Gross Income When Computing State Income Tax.

           “In computing net income for state income tax purposes for the
          calendar year 1965 and each year thereafter, a resident individual
          taxpayer shall be allowed to deduct from his gross income the
          amount of federal income tax paid or accrued within the taxable
          year. A nonresident individual income taxpayer shall be allowed to
          deduct only that amount of federal income tax paid or accrued in
          the taxable year on income received from sources within the state.”

4. Phases out the federal income tax deduction
  based on a taxpayer’s adjusted gross income (AGI).