SB209INTRODUCED
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SB209
CXX61WW-1
By Senator Hatcher
RFD: Finance and Taxation Education
First Read: 27-Feb-25
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5 CXX61WW-1 02/25/2025 RA (F) RA 2025-1016
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First Read: 27-Feb-25
SYNOPSIS:
Under current law, certain "covered items" are
exempt from sales tax during certain weekends during a
year. Some of these covered items have sales price caps
to qualify for exemption.
This bill would require the Department of
Revenue to adjust the dollar value of these items based
on changes in the Consumer Price Index.
In addition, this bill would increase the number
of days prior to which a local government must pass a
resolution or ordinance to adopt such exemptions for
local sales taxes.
A BILL
TO BE ENTITLED
AN ACT
Relating to sales tax; to amend Sections 40-23-210 and
40-23-230, Code of Alabama 1975, to require the Department of
Revenue to adjust the dollar value of certain covered items
based on changes in the Consumer Price Index; and to amend
Sections 40-23-213 and 40-23-233, Code of Alabama 1975, to
increase the number of days prior to which a local government
must pass a resolution or ordinance to adopt such exemptions
for local sales taxes.
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for local sales taxes.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-23-210, Code of Alabama 1975, is
amended to read as follows:
"§40-23-210
(a) As used in this article, the term "covered items"
means the following:
(1) Articles of clothing with a sales price of one
hundred dollars ($100), or less, per article of clothing.
a. "Clothing" means all human wearing apparel suitable
for general use including sandals, shoes, and sneakers.
"Clothing" shall not include the following:
1. Belt buckles sold separately.
2. Costume masks sold separately.
3. Patches and emblems sold separately.
4. Sewing equipment and supplies including, but not
limited to, knitting needles, patterns, pins, scissors, sewing
machines, sewing needles, tape measures, and thimbles.
5. Sewing materials that become part of "clothing"
including, but not limited to, buttons, fabric, lace, thread,
yarn, and zippers.
b. In addition, clothing shall not include clothing
accessories or equipment, protective equipment, or sport or
recreational equipment; as defined herein.
1. "Clothing accessories or equipment" means incidental
items worn on the person or in conjunction with "clothing."
The following list contains examples and is not intended to be
an all-inclusive list. "Clothing accessories or equipment"
shall include:
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shall include:
(i) Briefcases.
(ii) Cosmetics.
(iii) Hair notions, including, but not limited to,
barrettes, hair bows, and hair nets.
(iv) Handbags.
(v) Handkerchiefs.
(vi) Jewelry.
(vii) Sun glasses, non-prescription.
(viii) Umbrellas.
(ix) Wallets.
(x) Watches.
(xi) Wigs and hair pieces.
2. "Protective equipment" means items for human wear
and designed as protection of the wearer against injury or
disease or as protections against damage or injury of other
persons or property but not suitable for general use. The
following list contains examples and is not intended to be an
all-inclusive list. "Protective equipment" shall include:
(i) Breathing masks.
(ii) Clean room apparel and equipment.
(iii) Ear and hearing protectors.
(iv) Face shields.
(v) Hard hats.
(vi) Helmets.
(vii) Paint or dust respirators.
(viii) Protective gloves.
(ix) Safety glasses and goggles.
(x) Safety belts.
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(x) Safety belts.
(xi) Tool belts.
(xii) Welders gloves and masks.
3. "Sport or recreational equipment" means items
designed for human use and worn in conjunction with an
athletic or recreational activity that are not suitable for
general use. The following list contains examples and is not
intended to be an all-inclusive list. "Sport or recreational
equipment" shall include:
(i) Ballet and tap shoes.
(ii) Cleated or spiked athletic shoes.
(iii) Gloves, including, but not limited to, baseball,
bowling, boxing, hockey, and golf.
(iv) Goggles.
(v) Hand and elbow guards.
(vi) Life preservers and vests.
(vii) Mouth guards.
(viii) Roller and ice skates.
(ix) Shin guards.
(x) Shoulder pads.
(xi) Ski boots.
(xii) Waders.
(xiii) Wetsuits and fins.
(2) A single purchase, with a sales price of seven
hundred fifty dollars ($750), or less, of computers, computer
software, and school computer supplies.
a. A "computer" means an electronic device that accepts
information in digital or similar form and manipulates it for
a result based on a sequence of instructions.
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a result based on a sequence of instructions.
b. "Computer software" means a set of coded
instructions designed to cause a "computer" or automatic data
processing equipment to perform a task.
c. A "school computer supply" means an item commonly
used by a student in a course of study in which a computer is
used. The following is an all-inclusive list of school
computer supplies:
1. Computer storage media; diskettes, and compact
disks.
2. Handheld electronic schedulers, except devices that
are cellular phones.
3. Personal digital assistants, except devices that are
cellular phones.
4. Computer printers.
5. Printer supplies for computers; printer paper,
printer ink.
d. "Computer," "computer software," and "school
computer supplies" shall not include furniture and any
systems, devices, software, peripherals designed or intended
primarily for recreational use, or video games of a
noneducational nature.
(3) Noncommercial purchases of school supplies, school
art supplies, and school instructional material, up to a sales
price of fifty dollars ($50) per item.
a. "School supply" is an item commonly used by a
student in a course of study. The following is an
all-inclusive list:
1. Binders.
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1. Binders.
2. Book bags.
3. Calculators.
4. Cellophane tape.
5. Blackboard chalk.
6. Compasses.
7. Composition books.
8. Crayons.
9. Erasers.
10. Folders; expandable, pocket, plastic, and manila.
11. Glue, paste, and paste sticks.
12. Highlighters.
13. Index cards.
14. Index card boxes.
15. Legal pads.
16. Lunch boxes.
17. Markers.
18. Notebooks.
19. Paper; loose leaf ruled notebook paper, copy paper,
graph paper, tracing paper, manila paper, colored paper,
poster board, and construction paper.
20. Pencil boxes and other school supply boxes.
21. Pencil sharpeners.
22. Pencils.
23. Pens.
24. Protractors.
25. Rulers.
26. Scissors.
27. Writing tablets.
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27. Writing tablets.
b. "School art supply" is an item commonly used by a
student in a course of study for artwork. The following is an
all-inclusive list:
1. Clay and glazes.
2. Paints; acrylic, tempora, and oil.
3. Paintbrushes for artwork.
4. Sketch and drawing pads.
5. Watercolors.
c. "School instructional material" is written material
commonly used by a student in a course of study as a reference
and to learn the subject being taught. The following is an
all-inclusive list:
1. Reference maps and globes.
2. Required textbooks on an official school book list
with a sales price of more than thirty dollars ($30) and less
than fifty dollars ($50).
(4) Noncommercial purchases of books with a sales price
of not more than thirty dollars ($30) per book. The term
"book" shall mean a set of printed sheets bound together and
published in a volume with an ISBN number, but does not
include magazines, newspapers, periodicals, or any other
document printed or offered for sale in a non-bound form.
(b)(1) For calendar year 2026, the Alabama Department
of Revenue, by rule, shall adjust the dollar amounts provided
in subsection (a) by the percentage change in the Consumer
Price Index for all urban consumers as published by the U.S.
Department of Labor, Bureau of Labor Statistics, from December
2006 to December 2024, rounded to the nearest whole dollar.
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2006 to December 2024, rounded to the nearest whole dollar.
(2) The Alabama Department of Revenue shall repeat the
adjustment provided in subdivision (1) every five calendar
years using the Consumer Price Index for all urban consumers
as published by the U.S. Department of Labor, Bureau of Labor
Statistics, for the previous five years forward. "
Section 2. Section 40-23-230, Code of Alabama 1975, is
amended to read as follows:
"§40-23-230
(a) As used in this article, the term "covered items"
includes the following selling for $60 or less per item:
(1) Any package of AAA-cell, AA-cell, C-cell, D-cell,
6-volt, or 9-volt batteries, excluding coin batteries and
automobile and boat batteries.
(2) Any cellular phone battery or cellular phone
charger.
(3) Any portable self-powered or battery-powered radio,
two-way radio, weatherband radio, or NOAA weather radio.
(4) Any portable self-powered light source, including
battery-powered flashlights, lanterns, or emergency glow
sticks.
(5) Any tarpaulin, plastic sheeting, plastic drop
cloths, or other flexible, waterproof sheeting.
(6) Any ground anchor system, such as bungee cords or
rope, or tie-down kit.
(7) Any duct tape.
(8) Any plywood, window film, or other materials
specifically designed to protect window openings.
(9) Any non-electric food storage cooler or water
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(9) Any non-electric food storage cooler or water
storage container.
(10) Any non-electric can opener.
(11) Any artificial ice, blue ice, ice packs, or
reusable ice.
(12) Any self-contained first aid kit.
(13) Any fire extinguisher, smoke detector , or carbon
monoxide detector.
(14) Any gas or diesel fuel tank or container.
(b) The term "covered items" also includes any portable
generator and power cords used to provide light or
communications or preserve food in the event of a power outage
selling for $1,000 or less per item.
(c)(1) For calendar year 2026, the Alabama Department
of Revenue, by rule, shall adjust the dollar amounts provided
in subsection (a) and (b) by the percentage change in the
Consumer Price Index for all urban consumers as published by
the U.S. Department of Labor, Bureau of Labor Statistics, from
December 2006 to December 2024, rounded to the nearest whole
dollar.
(2) The Alabama Department of Revenue shall repeat the
adjustment provided in subdivision (1) every five calendar
years using the Consumer Price Index for all urban consumers
as published by the U.S. Department of Labor, Bureau of Labor
Statistics, for the previous five years forward. "
Section 3. Section 40-23-213, Code of Alabama 1975, is
amended to read as follows:
"§40-23-213
Any county or municipality may, by resolution or
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Any county or municipality may, by resolution or
ordinance adopted at least 3090 days prior to the third full
weekend of July, may provide for the exemption of covered
items from paying county or municipal sales and use taxes
during a period commencing at 12:01 a.m. on the third Friday
in July of each year and ending at 12 midnight the following
Sunday under the same terms, conditions, and definitions as
provided for the state sales tax holiday. Notwithstanding the
foregoing, a county or municipality is prohibited from
providing such an exemption during any other period of the
year."
Section 4. Section 40-23-233, Code of Alabama 1975, is
amended to read as follows:
"§40-23-233
Any county or municipality may, by resolution or
ordinance adopted at least 14 days prior to the first full
weekend of July in 2012 and at least 3090 days prior to the
last full weekend of February in subsequent years, may provide
for the exemption of covered items from paying county or
municipal sales and use taxes during a period commencing at
12:01 a.m. on the first Friday in July in 2012, and the Friday
of the last full weekend of February in subsequent years, and
ending at twelve 12:00 midnight the following Sunday under the
same terms, conditions, and definitions as provided for the
state sales tax holiday. Notwithstanding the foregoing, a
county or municipality is prohibited from providing such an
exemption during any other period of the year that is not
designated as a sales tax holiday."
Section 5. This act shall become effective on October
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Section 5. This act shall become effective on October
1, 2025.281