SB501 Summary

• Amends Alabama Code Section 40-23-2 to create an exemption from state automotive sales tax for automobiles, motorcycles, trucks, truck trailers, and semitrailers that will be registered or titled outside Alabama and are exported or removed from Alabama within 72 hours by the purchaser for first use outside the state.

• The exemption applies only to the state automotive sales tax rate and excludes county and municipal sales taxes.

• Exemption does not apply if the sales tax laws of the destination state allow Alabama residents to purchase vehicles for titling in Alabama without paying that state's tax.

• Requires the Alabama Department of Revenue to publish a list on the state website by October 1, 2015, and annually thereafter of states that do not allow drive-out provisions to Alabama residents; taxpayers relying on an incorrect list are relieved of liability for miscollected state automotive sales tax.

• Vehicle campers and housecars, mobile homes, motor bikes, all-terrain vehicles, and boats do not qualify for the export exemption; effective date is October 1, 2015.