Alabama legislation · 2025 Regular Session
Alabama HB386: Sales and use tax on food, state rate reduced, counties and municipalities authorized to reduce
Status: Signed into law, May 12, 2025
What the bill says
An Act, Relating to sales and use taxes; to amend Sections 40-23-2, 40-23-40, 40-23-61 and 40-23-62, Code of Alabama 1975, to reduce the state sales and use tax rate on food to two percent on September 1, 2025; and to revise the provisions authorizing a county or municipal governing body to reduce their sales and use tax on food to eliminate the restriction on the amount of rate cut and remove the growth requirement.
From the enrolled text:
An Act, Relating to sales and use taxes; to amend Sections 40-23-2, 40-23-40, 40-23-61 and 40-23-62, Code of Alabama 1975, to reduce the state sales and use tax rate on food to two percent on September 1, 2025; and to revise the provisions authorizing a county or municipal governing body to reduce their sales and use tax on food to eliminate the restriction on the amount of rate cut and remove the growth requirement. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Sections 40-23-2, 40-23-40, 40-23-61 and 40-23-62, Code of Alabama 1975, are hereby amended as follows: "§40-23-2 There is levied, in addition to all other taxes of every kind now imposed by law, and shall be collected as herein provided, a privilege or license tax against the person on account of the business activities and in the amount to be determined by the application of rates against gross sales, or gross receipts, as the case may be, as follows: (1) Upon every person, firm, or corporation, (including the State of Alabama and its Alcoholic Beverage Control Board in the sale of alcoholic beverages of all kinds, theThe University of Alabama, Auburn University, and all other institutions of higher learning in the state, whether the institutions be denominational, state, county, or municipal institutions, any association or other agency …
Sponsors
- Garrett, Danny (R, HD-044) · primary sponsor
- Stadthagen, Scott (R, HD-009)
- Colvin, William Brock (R, HD-026)
- Brinyark, Bryan (R, HD-016)
- Kirkland, Mike (R, HD-023)
- Marques, Rhett (R, HD-091)
- Rehm, Rick (R, HD-085)
- Price, Randy (R, SD-013)
- Paschal, Kenneth (R, HD-073)
- Shaw, Mike (R, HD-047)
- Mary Moore (D)
- McClammy, Patrice (D, HD-076)
Latest actions
- : Third Reading in House of Origin
- : Motion to Read a Third Time and Pass - Adopted Roll Call 714
- : Read for the first time and referred to the Senate Committee on Finance and Taxation General Fund
- : Pending Committee Action in Second House
- : Read for the Second Time and placed on the Calendar
- : Reported Out of Committee House of Origin
- : Read for the first time and referred to the House Committee on Ways and Means General Fund
- : Pending Committee Action in House of Origin
- : Carried Over to the Call of the Chair
- : Finance and Taxation Education 1st Substitute Offered
Votes
- Senate Roll Call #525 (February 24, 2026): 31 yea, 0 nay, passed
- Senate Roll Call #524 (February 24, 2026): 31 yea, 0 nay, passed
- House Roll Call #377 (February 12, 2026): 10 yea, 0 nay, passed
- House Roll Call #376 (February 12, 2026): 50 yea, 0 nay, passed
- Senate Roll Call #976 (May 6, 2025): 34 yea, 0 nay, passed
- Senate Roll Call #975 (May 6, 2025): 34 yea, 0 nay, passed
Subjects: Taxation & Revenue
Common questions
- What is HB386?
- HB386 is a bill in the Alabama Legislature (2025 Regular Session): Sales and use tax on food, state rate reduced, counties and municipalities authorized to reduce.
- What does HB386 do?
- In its own words: An Act, Relating to sales and use taxes; to amend Sections 40-23-2, 40-23-40, 40-23-61 and 40-23-62, Code of Alabama 1975, to reduce the state sales and use tax rate on food to two percent on September 1, 2025; and to revise the provisions authorizing a county or municipal governing body to reduce their sales and use tax on food to eliminate the restriction on the amount of rate cut and remove the growth requirement.
- What is the status of HB386?
- Signed into law as of May 12, 2025. Latest action: Third Reading in House of Origin (March 3, 2026).
- Who sponsored HB386?
- Garrett, Danny (R, HD-044), with 11 co-sponsors.
- Where is the official record for HB386?
- On the Alabama Legislature website: https://alison.legislature.state.al.us/instrument/2025RS/HB386
Source: official Alabama record. Tracked by Delilah, AI for legislation across all 50 states and Congress.