Budget & Taxes (Sales Tax)

in committee · Alabama · House Jan 27, 2026

HB 336: 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves 2% state sales tax on food, providing direct tax relief to consumers, especially lower-income households purchasing essentials. Aligns with tax relief indicators for 'support' stance.95% confidence

Sub-Topics Procurement Sales Tax

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signed · Alabama · Senate Apr 9, 2026

SB 152: Children's Health Insurance Program and Department of Human Resources, tax funds distributed

SB 152 increases the administrative funding for Alabama's food stamp program from 5% to 7.5% of statewide benefits issued, directly affecting the Department of Human Resources (DHR). It also changes how the Children's Health Insurance Program (CHIP) is funded by removing its requirement to be prioritized against use tax revenue, instead allowing other state revenue sources to support CHIP. The bill amends specific sections of Alabama law to adjust the distribution of sales and use tax funds, ensuring DHR receives a fixed annual amount for food stamp administration while providing flexibility for CHIP funding. These changes are limited to administrative adjustments in tax fund allocation, with no new program benefits or eligibility changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases DHR administrative funding from 5% to 7.5% and adjusts tax revenue allocation to support CHIP, directly advancing public service funding under tax policy.90% confidence ✓ HealthcareSupports HealthcareBill modifies CHIP funding to allow flexible revenue sources, preventing defunding and ensuring program stability for children's health insurance.90% confidence

Sub-Topics Revenue Sales Tax Children's Health Insurance Medicaid

passed · Alabama · House Mar 19, 2026

HB 326: Taxation, Most Worshipful Prince Hall Grand Lodge Free and Accepted Masons of Alabama and the Most Worshipful Grand Lodge F. and A.M. of Alabama, exempt from sales, county and municipal fees and taxes

HB 326 expands tax exemptions for Alabama Masonic lodges. It adds all subordinate lodges under the Prince Hall Grand Lodge and the regular Grand Lodge to existing state tax exemptions, covering sales, county, and municipal fees until September 2027. Local governments may also choose to exempt these groups from local sales taxes. Lodges must annually report all subordinate locations to the state revenue department.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill expands tax exemptions for Masonic lodges, reducing state tax revenue and weakening fiscal management through preferential treatment.90% confidence

Sub-Topics Revenue Sales Tax

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passed · Alabama · House Feb 12, 2026

HB 190: Railroad Modernization Act of 2019, to increase the cap on income tax credits and extend the sunset date for five years through tax year 2032

HB 190 extends Alabama's Railroad Rehabilitation Tax Credit program through 2032, increasing the annual credit cap from $3.7 million to $4.5 million and raising the per-mile credit amount from $3,500 to $4,100. It directly affects railroad companies owning or leasing track in Alabama by allowing them to claim tax credits covering 50% of eligible rehabilitation costs, with credits transferable at 85% value. The program is funded through sales tax revenues in the Education Trust Fund, with specific annual limits on total credits issued across the extended period.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases tax credit caps for railroads (from $3.7M to $4.5M), expands eligible costs, and extends program through 2032, directly advancing tax relief policy.95% confidence ✗ EducationOpposes EducationFunds railroad tax credits via Education Trust Fund, diverting resources from education funding toward rail infrastructure.90% confidence ✓ TransportationSupports TransportationBill extends tax credits for railroad rehabilitation, directly funding rail infrastructure improvements under transportation policy.90% confidence

Sub-Topics Income Tax Sales Tax Tax Credits Rail

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signed · Alabama · House Mar 5, 2026

HB 331: Blount County, lodging tax increased, additional lodging tax levied, collection and distribution provided for

HB 331 increases Blount County's lodging tax from 4% to 5% of room charges for short-term stays (under 30 days) and authorizes an additional $3 per room per night tax. It affects hotels, motels, and similar lodging businesses in Blount County that rent to transients. The tax will be collected like the state lodging tax, with proceeds deposited into the county tourism fund to support tourism promotion, park maintenance, beautification projects, and covered bridge upkeep. The bill takes effect October 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases lodging tax to fund tourism promotion, park maintenance, and infrastructure projects via dedicated tourism fund, directly advancing county fiscal management and public service funding.95% confidence

Sub-Topics Sales Tax

died · Alabama · Senate Apr 7, 2026

SB 123: Taxation; to exempt certain retail sales of fish or other seafood from sales and use taxes

SB 123 exempts retail sales of unmanufactured fish or seafood directly sold by anglers or fishermen (defined as "producers") from Alabama's state sales and use tax. It also allows counties and municipalities to choose to exempt these same sales from local sales taxes through a local resolution or ordinance. The bill applies only to seafood in its original, unprocessed state sold at retail by the producer, not to restaurants or processors. The exemption would take effect on September 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts seafood sales from state tax, providing targeted tax relief for producers, aligning with fiscal responsibility and tax relief indicators.92% confidence

Sub-Topics Sales Tax

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in committee · Alabama · Senate Feb 24, 2026

SB 235: Taxation; Crime Stoppers of Metro Alabama, Incorporated, exempt from sales and use taxes

SB 235 exempts Crime Stoppers of Metro Alabama, Incorporated, from paying Alabama state sales and use taxes. It also allows counties and municipalities to choose whether to exempt this organization from local sales and use taxes through a local resolution or ordinance. The bill takes effect on September 1, 2026, and directly affects this specific nonprofit organization by removing its tax obligations for sales and use taxes at both state and optional local levels. This is a targeted tax exemption, not a broad policy change.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts nonprofit from state/local taxes, reducing tax revenue and weakening tax collection.90% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Alabama · House Jan 20, 2026

HB 286: Taxation; Energy use in broadcast stations, exempt from utility gross receipts and utility service use tax

HB 286 exempts radio and television broadcast stations licensed by the Federal Communications Commission from Alabama's utility gross receipts tax and utility service use tax on electricity, natural gas, telephone services, and other connectivity services used in their operations. This directly affects licensed broadcast stations by removing taxes on their energy and connectivity expenses for essential equipment like studio facilities, transmitters, and backup power systems. The bill amends Alabama tax code sections to specifically include broadcast stations in existing exemptions for utility services used in production. The exemption applies to all electricity, gas, phone services, and connectivity used for broadcasting functions, effective September 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts broadcast stations from utility taxes, providing tax relief per bill's intent.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Alabama · Senate Feb 24, 2026

SB 236: Taxation; Life on Wheels, exempt from state, county, and municipal sales and use taxes

SB 236 exempts "Life on Wheels" from paying Alabama state sales and use taxes. The bill provides this exemption for state taxes but requires separate approval for county or municipal taxes under existing law. The exemption would apply from September 1, 2026, through August 31, 2029, and takes effect on June 1, 2026. This directly affects Life on Wheels' tax obligations for qualifying purchases.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill exempts 'Life on Wheels' from state sales taxes, reducing tax revenue and weakening tax collection for the state budget.85% confidence

Sub-Topics Sales Tax

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in committee · Alabama · Senate Jan 27, 2026

SB 217: Mixed spirit beverages, providing for distribution, retail sale, and tax

SB 217 defines "mixed spirit beverages" as drinks containing no more than 7% alcohol by volume, creating a new category currently regulated like liquor (not distributed through beer/wine channels). The bill establishes a licensing system requiring these beverages to be distributed through licensed wholesalers to licensed retailers (except ABC stores), imposes an excise tax on distribution, and mandates exclusive sales territories with binding distribution agreements between suppliers and wholesalers. It also sets penalties for retailers selling to individuals under 21 and adds labeling/display requirements to prevent misleading marketing. This directly affects businesses producing, distributing, and selling these low-alcohol beverages in Alabama.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes excise tax on distribution of mixed spirit beverages, generating state revenue directly impacting budget/tax framework.95% confidence

Sub-Topics Sales Tax

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