HB129 Summary

• Clarifies and confirms that gross proceeds from sales of tangible personal property by private schools, colleges, and universities in Alabama are exempt from state and local sales and use taxes.

• Extends sales tax exemption to lunches sold to school children (both public and private school students) while in school buildings, provided they are not sold for profit.

• Applies retroactively to all open tax periods and periods where preliminary or final tax assessments could be entered, but prohibits refunds for periods prior to the effective date.

• Amends Sections 40-23-4 and 40-23-62 of the Code of Alabama 1975 to codify these exemptions explicitly in state law.

• Became effective immediately upon passage and approval by the Governor.