Alabama recently updated the state-level sales tax rate on food, reducing it from 4% to 3%, effective September 1, 2023. This does not affect local jurisdiction rates such as city and county sales tax rates on food, although cities and counties are permitted to reduce their rate on food. If your organization or business sells food in the state of Alabama, be sure to check your local jurisdiction rates to ensure you’re charging the correct sales tax rate.

The first sales tax return where this change will be reflected is the September Sales Tax Return due October 20, 2023. Be on the lookout for these changes!

For more information, please visit the AL Department of Revenue to read the full notice or contact your BMSS professional at (833) CPA-BMSS.

About BMSS

BMSS Advisors & CPAs was established in 1991 with the vision of creating a CPA firm that would provide peace of mind for its clients while sustaining a healthy, happy culture for its employees. As this dream has been realized, BMSS has grown to become one of the Southeast’s top advisory and accounting firms, now with eight offices throughout Alabama and Mississippi.

The CPA firm specializes in several industries, including (but not limited to) manufacturing, wholesale distribution, construction, technology, nonprofit, and government contracting. In addition to tax planning, compliance and assurance services, the firm boasts a robust business advisory practice area which includes transaction advisory, valuation, client accounting solutions, and CFO advisory services. BMSS also specializes in state and local tax, estate planning and employee benefit plan audits.

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