The Food Tax Bill
  • Are there any exclusions from the state food tax
    exemption?
 Rep. Knight's proposed substitute, also exempts candy and soft drinks
 from state sales tax.  However, prepared foods that you purchase from
 a restaurant or grocery store hot counter are excluded.

  • Isn't this bill really designed to raise taxes to help the
    poor and punish the rich?
 Absolutely not, with the Tax Fairness Amendment of 2009 everyone
 can save money on the elimination of the state food tax.  While these
 savings are certainly more critical for families struggling to keep food
 on the table, the bill does not unfairly punish any group of taxpayers.

  • If the state removes its portion of the food tax, won't
    cities and counties just raise it back?
 The food tax legislation requires local governments to tax food at a  
 rate equal to their general sales tax rate.  While the bill does not     
 prevent  municipalities from raising their food tax rate, it requires them
 to tax food at their general sales tax rate.  So, if a county wanted to
 increase the food tax rate, they would also have to raise the retail tax  
 rate.

  • Does this bill alter property taxes in any way?
 This legislation will not impact property taxes.

  • When will I lose my federal income tax deduction?
 The federal income tax deduction is phased out for single filers making more
 than $200,000 per year and married taxpayers filing jointly making more than
 $400,000 per year.
Removing Alabama's Sales Tax on Groceries
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