House Bill 479

Amends Sections 40-23-1, 40-23-2, 40-23-60, and 40-23-61, Code of Alabama 1975, to: (1) reduce the state sales and use tax rate on food from four percent to three percent; (2) contingent upon the satisfaction of certain estimated growth requirements in the total net receipts to the Education Trust Fund, further reduce the states sales and use tax rate on food to two percent, effective September 1, 2024, provided, if the growth requirements are not satisfied, the state sales and use tax rate on food will be reduced to two percent in a subsequent fiscal year when the growth requirements are satisfied; (3) establishes each county or municipality’s tax rate on food as of the effective date of this act as the general or retail sales tax rate on food, and prohibits any county or municipality from levying an additional sales and use tax on food; and (4) authorize counties and municipalities to reduce, by ordinance or resolution, the tax rate on food by 25 percent in any year in which the growth in that county or municipality’s general fund exceeds two percent over the prior year.