HB4 Summary

• Repeals Alabama's income tax, sales and use tax, estate and gift tax, and numerous other state taxes effective January 1, 2020.

• Establishes a new 8.303% consumption tax on all taxable property and services purchased for final consumption in Alabama, with broad-based application and minimal exemptions.

• Provides monthly family consumption tax rebates to registered qualified families based on poverty level thresholds to offset tax burden on lower-income Alabamians.

• Creates comprehensive administrative framework including seller registration requirements, monthly tax reporting, credit mechanisms for business purchases and bad debts, and detailed rules for financial intermediation services and special transactions.

• Amends taxpayer rights provisions to strengthen procedural protections, including requirements for written notices before examinations and assessments, authorization of audio recording of interviews, and expanded Taxpayer Advocate authority to issue assistance orders.