Bill > HB191

This bill establishes new conditions for how county and municipal sales and use tax exemptions can be implemented in Alabama. Under the new law, any sales and use tax exemption that applies to state taxes must also explicitly apply to county and municipal taxes, and must be approved through a specific process. To create a new tax exemption, a county or municipality must pass a resolution or ordinance that specifies an effective date of September 1st, determines the duration of the exemption (in fiscal year increments or permanently), and provides notice to the Alabama Department of Revenue by July 1st before the exemption takes effect. The bill also allows counties and municipalities to rescind existing tax exemptions using a similar process, with the rescission taking effect on September 1st and requiring advance notice. Existing general laws providing tax exemptions prior to this act will have until September 1st, 2025, to comply with the new requirements, after which they will cease to be effective unless they meet the new standards. The Alabama Department of Revenue is required to maintain a public listing of these county and municipal sales and use tax exemptions and may create rules to implement the new law.

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