HB315 Summary

• Amends Alabama sales tax code to require the Department of Revenue to adjust dollar value thresholds for tax-exempt items based on Consumer Price Index changes, effective in calendar year 2026 and every five years thereafter.

• Increases the clothing sales price exemption threshold from $100 to an indexed amount, and adjusts exemption caps for computers/software ($750), school supplies ($50), and books ($30) based on inflation.

• Expands covered items for emergency preparedness sales tax holiday to include batteries, radios, light sources, tarps, coolers, first aid kits, fire extinguishers, and portable generators (up to $1,000) selling for $60 or less.

• Increases advance notice requirement for local governments adopting tax exemptions from 14 days to 90 days prior to the third full weekend of July and 90 days prior to the last full weekend of February.

• Effective date: October 1, 2025.