AL HB26

Removes the exception to Alabama's sales tax trade-in provision that previously required full sales tax on new automotive batteries when old batteries were exchanged, bringing batteries into compliance with the standard trade-in rule for other automotive parts.

Sales tax on new automotive batteries will now be calculated on the net difference between the new battery price and the credit given for the old battery being returned, rather than on the full purchase price.

Amends Section 40-23-2 of the Code of Alabama 1975 to delete the battery exception language that stated "provided, however, this provision shall not be construed to include batteries."

Becomes effective on the first day of the third month following passage and approval by the Governor, or upon otherwise becoming law.