HB 290 Summary

• Amends Alabama sales and use tax law to standardize exemptions between the two tax types by aligning current exemptions and incorporating certain sales tax exemptions into use tax law.

• Exempts gross proceeds from services provided by photographers and commissioned portrait artists from sales tax, effective immediately.

• Exempts sales of photographs or commissioned portraits (not merely incidental to services) from sales tax regardless of delivery method, with no retroactive tax collection permitted for transactions before October 1, 2017.

• Applies retroactively to all open tax years and tax periods for which assessments could be entered, but prohibits refunds for periods prior to the act's effective date.

• Takes effect immediately upon passage and approval by the Governor.