SB387 Alabama 2012 Session

Under existing law, the state imposes sales or use taxes upon certain persons, firms, or corporations. Sales of certain items are taxed at a reduced rate. Sales of other items are exempt from the taxes

This bill would increase the state sales and use tax general rate to four and one-quarter percent on September 1, 2012, to four and one-half percent on September 1, 2013, to four and three-quarters percent on September 1, 2014, and to five percent on September 1, 2015

This bill would phase out the state sales and use taxes on food over a four-year period by reducing the rates by one percentage point per year beginning September 1, 2012

This bill would exempt sales of food from the sales and use taxes beginning September 1, 2015

To amend Sections 40-23-2 and 40-23-61, Code of Alabama 1975, to increase the state sales and use tax general rates to four and one-quarter percent on September 1, 2012, to four and one-half percent on September 1, 2013, to four and three-quarters percent on September 1, 2014, and to five percent on September 1, 2015; to phase out the state sales and use taxes on food by reducing the rates by one percentage point per year beginning September 1, 2012; to exempt sales of food from the sales and use taxes beginning September 1, 2015.