HB191INTRODUCED
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HB191
W6QR95E-1
By Representatives Baker, Wood (D)
RFD: County and Municipal Government
First Read: 05-Feb-25
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5 W6QR95E-1 01/29/2025 DJ (F)DJ 2025-213
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First Read: 05-Feb-25
SYNOPSIS:
Current law exempts the sale of certain goods
from state sales and use tax and provides for county
and municipalities to exempt these goods from local
sales and use taxes by resolution or ordinance.
This bill would provide conditions under which a
county or municipality may adopt local sales and use
tax exemptions.
A BILL
TO BE ENTITLED
AN ACT
Regarding sales and use tax; to establish conditions
for exemption of county or municipal sales and use tax.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) Notwithstanding any other laws to the
contrary, any law that enacts or amends a sales and use tax
exemption shall apply only to state sales and use taxes and
shall not apply to county or municipal sales and use taxes,
unless all of the following are satisfied:
(1) The law provides for exemption of county or
municipal sales and use tax.
(2) The exemption is approved by resolution or
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(2) The exemption is approved by resolution or
ordinance of the county or municipality. The resolution or
ordinance must include all of the following provisions:
a. An effective date of September 1 of a given year for
the exemption.
b. The duration of the exemption, which must be in
fiscal year increments or in perpetuity.
(3) The county commission or municipality provides
notice of the resolution or ordinance to the Alabama
Department of Revenue by July 1 prior to the effective date of
the exemption.
(b) A county or municipality may rescind a county or
municipal sales and use tax exemption by resolution or
ordinance provided both of the following conditions are met:
(1) The rescission is effective beginning on September
1 of a given fiscal year.
(2) The county commission or municipality provides
notice of the resolution or ordinance to the Alabama
Department of Revenue by July 1 prior to the effective date of
the rescission.
(c)(1) This act does not amend, repeal, or supersede
any general law enacted prior to the effective date of this
act that provides an exemption from county or municipal sales
and use taxes, if the law does not require adoption of a
resolution or ordinance by the county or municipality for the
county or municipal sales and use tax exemption to become
effective.
(2) Notwithstanding any other law to the contrary, a
county or municipality may not adopt a resolution or ordinance
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county or municipality may not adopt a resolution or ordinance
providing a county or municipal sales or use tax exemption
pursuant to a general law enacted prior to the effective date
of this act, unless the county or municipality complies with
subdivisions (a)(2) and (a)(3).
(3) Notwithstanding any other law to the contrary, any
county or municipal sales or use tax exemption adopted by a
county or municipality pursuant to a general law enacted prior
to the effective date of this act shall cease to be effective
beginning September 1, 2025, unless the county or municipality
complies with subdivisions (a)(2) and (a)(3).
(d) The department shall publish and maintain a listing
of county and municipal sales and use tax exemptions adopted
as provided by this section.
(e) The department may adopt rules to administer and
implement this section.
Section 2. This act shall become effective immediately.
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