Taxation; to eliminate the sales tax on food over a four year period

This bill proposes to gradually eliminate the state sales tax on food in Alabama over a four-year period, starting with a one-half percent reduction on September 1, 2026, and continuing annually until food becomes fully exempt by September 1, 2029. Currently, food is taxed at a reduced rate of two percent compared to the general four percent sales tax rate, and this legislation would phase out that remaining tax. The bill also grants counties and municipalities the authority to choose to exempt food from local sales and use taxes. This change would directly affect consumers purchasing food and businesses that sell food products within the state.