Bill > SB160

This bill establishes new conditions for sales and use tax exemptions at the county and municipal levels in Alabama. Under the new law, any sales and use tax exemption that applies to state taxes will not automatically extend to county or municipal taxes unless specific requirements are met. These requirements include: the exemption must be explicitly approved by a county or municipal resolution or ordinance, which must specify an effective date of September 1st, define the duration of the exemption in fiscal year increments or perpetuity, and the local government must provide notice to the Alabama Department of Revenue by July 1st before the exemption takes effect. Counties and municipalities can also rescind these tax exemptions, but must follow similar procedural requirements, with rescissions also becoming effective on September 1st and requiring notification to the Department of Revenue by July 1st. The bill grandfathers in existing exemptions but requires that any exemptions adopted under previous general laws must comply with the new requirements by September 1st, 2025, or they will cease to be effective. The Alabama Department of Revenue is tasked with publishing and maintaining a list of these county and municipal sales and use tax exemptions and is authorized to adopt rules for implementing the new law.

Budget and Finance

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