Section 40-23-40 - Levy of sales and use tax on food by counties and municipalities(a) On June 15, 2023, the definition of "food" in Sections 40-23-1 and 40-23-60, shall apply to county and municipal sales and use taxes. For purposes of county and municipal sales and use taxes, the sales tax rate on food shall be established as the general or retail sales tax rate in effect in the county or municipality on June 15, 2023, unless otherwise provided by law. An act of the Legislature or an ordinance or resolution adopted by a county or municipal governing body levying a county or municipal sales and use tax inclusive of food passed or enacted on or before June 15, 2023, shall remain operative, but no additional county or municipal sales and use taxes on food may be levied.(b) Any county or municipal governing body, by resolution or ordinance, may reduce the general or retail sales tax rate on food for local sales and use taxes by 25 percent in any year in which the growth in the applicable municipal or county general fund exceeds two percent over the prior year. The ordinance or resolution must be adopted at least 60 days prior to becoming effective and will take effect on October 1 following adoption.(c) A county or municipal governing body that reduces its general or retail sales tax rate on food for local sales and use taxes pursuant to this section may subsequently increase the rate on food not to exceed the rate in effect in the county or municipality on June 15, 2023, unless otherwise provided by law.Ala. Code § 40-23-40 (1975)
Added by Act 2023-554, § 2, eff. 6/15/2023.