- The Alabama Department of Revenue has announced a reduction in the state sales and use tax rates on food.
- The tax rate will be reduced from four percent to three percent starting from September 1, 2023.
- There is a possibility of further reduction to two percent on September 1, 2024, if there is sufficient growth in the state Education Trust Fund.
- City and county sales and use tax rates on food will be equal to their general sales tax rate as of June 15, 2023.
- Local governments can reduce their rate on food in 25 percent increments if there is sufficient growth in their local General Fund.
- The definition of “food” for tax purposes is the same as defined in the federal Supplemental Nutrition Assistance Program (SNAP).
- SNAP-eligible food items generally include any food or food product for home consumption, except alcoholic beverages, tobacco, hot foods, or food products ready for immediate consumption.
- Contact information is provided for additional information on SNAP-eligible and ineligible items.
Source: jdsupra.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
