AL
Alabama Senate Bill SB209

Alabama 2025 Regular Session

Alabama Senate Bill SB209 Compare Versions

Only one version of the bill is available at this time.
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11 SB209INTRODUCED
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33 SB209
44 CXX61WW-1
55 By Senator Hatcher
66 RFD: Finance and Taxation Education
77 First Read: 27-Feb-25
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1212 5 CXX61WW-1 02/25/2025 RA (F) RA 2025-1016
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1414 First Read: 27-Feb-25
1515 SYNOPSIS:
1616 Under current law, certain "covered items" are
1717 exempt from sales tax during certain weekends during a
1818 year. Some of these covered items have sales price caps
1919 to qualify for exemption.
2020 This bill would require the Department of
2121 Revenue to adjust the dollar value of these items based
2222 on changes in the Consumer Price Index.
2323 In addition, this bill would increase the number
2424 of days prior to which a local government must pass a
2525 resolution or ordinance to adopt such exemptions for
2626 local sales taxes.
2727 A BILL
2828 TO BE ENTITLED
2929 AN ACT
3030 Relating to sales tax; to amend Sections 40-23-210 and
3131 40-23-230, Code of Alabama 1975, to require the Department of
3232 Revenue to adjust the dollar value of certain covered items
3333 based on changes in the Consumer Price Index; and to amend
3434 Sections 40-23-213 and 40-23-233, Code of Alabama 1975, to
3535 increase the number of days prior to which a local government
3636 must pass a resolution or ordinance to adopt such exemptions
3737 for local sales taxes.
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6767 for local sales taxes.
6868 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
6969 Section 1. Section 40-23-210, Code of Alabama 1975, is
7070 amended to read as follows:
7171 "§40-23-210
7272 (a) As used in this article, the term "covered items"
7373 means the following:
7474 (1) Articles of clothing with a sales price of one
7575 hundred dollars ($100), or less, per article of clothing.
7676 a. "Clothing" means all human wearing apparel suitable
7777 for general use including sandals, shoes, and sneakers.
7878 "Clothing" shall not include the following:
7979 1. Belt buckles sold separately.
8080 2. Costume masks sold separately.
8181 3. Patches and emblems sold separately.
8282 4. Sewing equipment and supplies including, but not
8383 limited to, knitting needles, patterns, pins, scissors, sewing
8484 machines, sewing needles, tape measures, and thimbles.
8585 5. Sewing materials that become part of "clothing"
8686 including, but not limited to, buttons, fabric, lace, thread,
8787 yarn, and zippers.
8888 b. In addition, clothing shall not include clothing
8989 accessories or equipment, protective equipment, or sport or
9090 recreational equipment; as defined herein.
9191 1. "Clothing accessories or equipment" means incidental
9292 items worn on the person or in conjunction with "clothing."
9393 The following list contains examples and is not intended to be
9494 an all-inclusive list. "Clothing accessories or equipment"
9595 shall include:
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125125 shall include:
126126 (i) Briefcases.
127127 (ii) Cosmetics.
128128 (iii) Hair notions, including, but not limited to,
129129 barrettes, hair bows, and hair nets.
130130 (iv) Handbags.
131131 (v) Handkerchiefs.
132132 (vi) Jewelry.
133133 (vii) Sun glasses, non-prescription.
134134 (viii) Umbrellas.
135135 (ix) Wallets.
136136 (x) Watches.
137137 (xi) Wigs and hair pieces.
138138 2. "Protective equipment" means items for human wear
139139 and designed as protection of the wearer against injury or
140140 disease or as protections against damage or injury of other
141141 persons or property but not suitable for general use. The
142142 following list contains examples and is not intended to be an
143143 all-inclusive list. "Protective equipment" shall include:
144144 (i) Breathing masks.
145145 (ii) Clean room apparel and equipment.
146146 (iii) Ear and hearing protectors.
147147 (iv) Face shields.
148148 (v) Hard hats.
149149 (vi) Helmets.
150150 (vii) Paint or dust respirators.
151151 (viii) Protective gloves.
152152 (ix) Safety glasses and goggles.
153153 (x) Safety belts.
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183183 (x) Safety belts.
184184 (xi) Tool belts.
185185 (xii) Welders gloves and masks.
186186 3. "Sport or recreational equipment" means items
187187 designed for human use and worn in conjunction with an
188188 athletic or recreational activity that are not suitable for
189189 general use. The following list contains examples and is not
190190 intended to be an all-inclusive list. "Sport or recreational
191191 equipment" shall include:
192192 (i) Ballet and tap shoes.
193193 (ii) Cleated or spiked athletic shoes.
194194 (iii) Gloves, including, but not limited to, baseball,
195195 bowling, boxing, hockey, and golf.
196196 (iv) Goggles.
197197 (v) Hand and elbow guards.
198198 (vi) Life preservers and vests.
199199 (vii) Mouth guards.
200200 (viii) Roller and ice skates.
201201 (ix) Shin guards.
202202 (x) Shoulder pads.
203203 (xi) Ski boots.
204204 (xii) Waders.
205205 (xiii) Wetsuits and fins.
206206 (2) A single purchase, with a sales price of seven
207207 hundred fifty dollars ($750), or less, of computers, computer
208208 software, and school computer supplies.
209209 a. A "computer" means an electronic device that accepts
210210 information in digital or similar form and manipulates it for
211211 a result based on a sequence of instructions.
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241241 a result based on a sequence of instructions.
242242 b. "Computer software" means a set of coded
243243 instructions designed to cause a "computer" or automatic data
244244 processing equipment to perform a task.
245245 c. A "school computer supply" means an item commonly
246246 used by a student in a course of study in which a computer is
247247 used. The following is an all-inclusive list of school
248248 computer supplies:
249249 1. Computer storage media; diskettes, and compact
250250 disks.
251251 2. Handheld electronic schedulers, except devices that
252252 are cellular phones.
253253 3. Personal digital assistants, except devices that are
254254 cellular phones.
255255 4. Computer printers.
256256 5. Printer supplies for computers; printer paper,
257257 printer ink.
258258 d. "Computer," "computer software," and "school
259259 computer supplies" shall not include furniture and any
260260 systems, devices, software, peripherals designed or intended
261261 primarily for recreational use, or video games of a
262262 noneducational nature.
263263 (3) Noncommercial purchases of school supplies, school
264264 art supplies, and school instructional material, up to a sales
265265 price of fifty dollars ($50) per item.
266266 a. "School supply" is an item commonly used by a
267267 student in a course of study. The following is an
268268 all-inclusive list:
269269 1. Binders.
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299299 1. Binders.
300300 2. Book bags.
301301 3. Calculators.
302302 4. Cellophane tape.
303303 5. Blackboard chalk.
304304 6. Compasses.
305305 7. Composition books.
306306 8. Crayons.
307307 9. Erasers.
308308 10. Folders; expandable, pocket, plastic, and manila.
309309 11. Glue, paste, and paste sticks.
310310 12. Highlighters.
311311 13. Index cards.
312312 14. Index card boxes.
313313 15. Legal pads.
314314 16. Lunch boxes.
315315 17. Markers.
316316 18. Notebooks.
317317 19. Paper; loose leaf ruled notebook paper, copy paper,
318318 graph paper, tracing paper, manila paper, colored paper,
319319 poster board, and construction paper.
320320 20. Pencil boxes and other school supply boxes.
321321 21. Pencil sharpeners.
322322 22. Pencils.
323323 23. Pens.
324324 24. Protractors.
325325 25. Rulers.
326326 26. Scissors.
327327 27. Writing tablets.
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357357 27. Writing tablets.
358358 b. "School art supply" is an item commonly used by a
359359 student in a course of study for artwork. The following is an
360360 all-inclusive list:
361361 1. Clay and glazes.
362362 2. Paints; acrylic, tempora, and oil.
363363 3. Paintbrushes for artwork.
364364 4. Sketch and drawing pads.
365365 5. Watercolors.
366366 c. "School instructional material" is written material
367367 commonly used by a student in a course of study as a reference
368368 and to learn the subject being taught. The following is an
369369 all-inclusive list:
370370 1. Reference maps and globes.
371371 2. Required textbooks on an official school book list
372372 with a sales price of more than thirty dollars ($30) and less
373373 than fifty dollars ($50).
374374 (4) Noncommercial purchases of books with a sales price
375375 of not more than thirty dollars ($30) per book. The term
376376 "book" shall mean a set of printed sheets bound together and
377377 published in a volume with an ISBN number, but does not
378378 include magazines, newspapers, periodicals, or any other
379379 document printed or offered for sale in a non-bound form.
380380 (b)(1) For calendar year 2026, the Alabama Department
381381 of Revenue, by rule, shall adjust the dollar amounts provided
382382 in subsection (a) by the percentage change in the Consumer
383383 Price Index for all urban consumers as published by the U.S.
384384 Department of Labor, Bureau of Labor Statistics, from December
385385 2006 to December 2024, rounded to the nearest whole dollar.
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415415 2006 to December 2024, rounded to the nearest whole dollar.
416416 (2) The Alabama Department of Revenue shall repeat the
417417 adjustment provided in subdivision (1) every five calendar
418418 years using the Consumer Price Index for all urban consumers
419419 as published by the U.S. Department of Labor, Bureau of Labor
420420 Statistics, for the previous five years forward. "
421421 Section 2. Section 40-23-230, Code of Alabama 1975, is
422422 amended to read as follows:
423423 "§40-23-230
424424 (a) As used in this article, the term "covered items"
425425 includes the following selling for $60 or less per item:
426426 (1) Any package of AAA-cell, AA-cell, C-cell, D-cell,
427427 6-volt, or 9-volt batteries, excluding coin batteries and
428428 automobile and boat batteries.
429429 (2) Any cellular phone battery or cellular phone
430430 charger.
431431 (3) Any portable self-powered or battery-powered radio,
432432 two-way radio, weatherband radio, or NOAA weather radio.
433433 (4) Any portable self-powered light source, including
434434 battery-powered flashlights, lanterns, or emergency glow
435435 sticks.
436436 (5) Any tarpaulin, plastic sheeting, plastic drop
437437 cloths, or other flexible, waterproof sheeting.
438438 (6) Any ground anchor system, such as bungee cords or
439439 rope, or tie-down kit.
440440 (7) Any duct tape.
441441 (8) Any plywood, window film, or other materials
442442 specifically designed to protect window openings.
443443 (9) Any non-electric food storage cooler or water
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473473 (9) Any non-electric food storage cooler or water
474474 storage container.
475475 (10) Any non-electric can opener.
476476 (11) Any artificial ice, blue ice, ice packs, or
477477 reusable ice.
478478 (12) Any self-contained first aid kit.
479479 (13) Any fire extinguisher, smoke detector , or carbon
480480 monoxide detector.
481481 (14) Any gas or diesel fuel tank or container.
482482 (b) The term "covered items" also includes any portable
483483 generator and power cords used to provide light or
484484 communications or preserve food in the event of a power outage
485485 selling for $1,000 or less per item.
486486 (c)(1) For calendar year 2026, the Alabama Department
487487 of Revenue, by rule, shall adjust the dollar amounts provided
488488 in subsection (a) and (b) by the percentage change in the
489489 Consumer Price Index for all urban consumers as published by
490490 the U.S. Department of Labor, Bureau of Labor Statistics, from
491491 December 2006 to December 2024, rounded to the nearest whole
492492 dollar.
493493 (2) The Alabama Department of Revenue shall repeat the
494494 adjustment provided in subdivision (1) every five calendar
495495 years using the Consumer Price Index for all urban consumers
496496 as published by the U.S. Department of Labor, Bureau of Labor
497497 Statistics, for the previous five years forward. "
498498 Section 3. Section 40-23-213, Code of Alabama 1975, is
499499 amended to read as follows:
500500 "§40-23-213
501501 Any county or municipality may, by resolution or
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531531 Any county or municipality may, by resolution or
532532 ordinance adopted at least 3090 days prior to the third full
533533 weekend of July, may provide for the exemption of covered
534534 items from paying county or municipal sales and use taxes
535535 during a period commencing at 12:01 a.m. on the third Friday
536536 in July of each year and ending at 12 midnight the following
537537 Sunday under the same terms, conditions, and definitions as
538538 provided for the state sales tax holiday. Notwithstanding the
539539 foregoing, a county or municipality is prohibited from
540540 providing such an exemption during any other period of the
541541 year."
542542 Section 4. Section 40-23-233, Code of Alabama 1975, is
543543 amended to read as follows:
544544 "§40-23-233
545545 Any county or municipality may, by resolution or
546546 ordinance adopted at least 14 days prior to the first full
547547 weekend of July in 2012 and at least 3090 days prior to the
548548 last full weekend of February in subsequent years, may provide
549549 for the exemption of covered items from paying county or
550550 municipal sales and use taxes during a period commencing at
551551 12:01 a.m. on the first Friday in July in 2012, and the Friday
552552 of the last full weekend of February in subsequent years, and
553553 ending at twelve 12:00 midnight the following Sunday under the
554554 same terms, conditions, and definitions as provided for the
555555 state sales tax holiday. Notwithstanding the foregoing, a
556556 county or municipality is prohibited from providing such an
557557 exemption during any other period of the year that is not
558558 designated as a sales tax holiday."
559559 Section 5. This act shall become effective on October
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589589 Section 5. This act shall become effective on October
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