AL HB191

Any law that enacts or amends a sales and use tax exemption applies only to state sales and use taxes unless the exemption is specifically provided for county or municipal taxes and approved by county or municipality resolution or ordinance.

County or municipal tax exemptions must have an effective date of September 1 of a given year, a duration specified in fiscal year increments or in perpetuity, and require notice to the Alabama Department of Revenue by July 1 prior to the effective date.

Counties and municipalities may rescind sales and use tax exemptions by resolution or ordinance effective September 1 of a given fiscal year, with notice to the Department of Revenue by July 1 prior to the rescission date.

Any county or municipal sales and use tax exemption adopted under general laws enacted before this act becomes effective ceases on September 1, 2025, unless the county or municipality complies with the new resolution, ordinance, and notice requirements.

The Alabama Department of Revenue shall publish and maintain a listing of all county and municipal sales and use tax exemptions adopted under this act and may adopt rules for implementation.