HB540 Summary

• Lee County Commission is authorized to levy sales and use taxes outside the corporate limits of Auburn, Opelika, and Phenix City, generally paralleling state sales and use taxes.

• Sales tax rate of 1% applies to retail sales of tangible personal property, with exemptions for bonds, stocks, and materials for vessel repair over 50 tons.

• Excise taxes of 3/8 of 1% apply to sales of mining/manufacturing machinery and automotive vehicles, with trade-in allowances reducing the taxable amount.

• In the Phenix City police jurisdiction area outside corporate limits, tax is levied at one-half the rate applied in areas outside Auburn and Opelika police jurisdictions.

• Lee County Commission is prohibited from levying any tax measured by gross receipts except sales or use taxes that parallel state law, capped at a maximum rate of 1%.