HB389 Summary

• Amends Sections 40-23-4 and 40-23-62 of the Code of Alabama 1975 to repeal numerous sales and use tax exemptions currently granted to certain industries and activities.

• Eliminates exemptions for items including lubricating oil and gasoline, fertilizer, seeds, livestock, insecticides, aircraft, commercial fishing vessel fuel, and various agricultural products and supplies.

• Removes exemptions for specific entities and organizations such as the Cystic Fibrosis Research Foundation and Jefferson Tuberculosis Sanatorium, as well as exemptions for medicines prescribed to seniors age 65 and older.

• Maintains criminal penalties of $500-$2,000 in fines and 6 months to 1 year in county jail for violations of the tax code provisions.

• Takes effect on the first day of the third month following passage and approval by the Governor.