Sales and use tax; to exempt food from sales and use taxes

HB 336 would eliminate Alabama's state sales tax on food, which currently applies at a 2% rate, effective September 1, 2026. This change directly affects all Alabama residents and businesses purchasing food, reducing the cost of grocery and meal expenses. The bill repeals the existing food tax at the state level and allows local governments to choose whether to also exempt food from their local sales taxes. This policy change removes a specific tax burden on food items without altering other tax rates or creating new fees.