AL SB160

New sales and use tax exemptions apply only to state taxes unless the law explicitly provides for county or municipal tax exemptions approved by local resolution or ordinance.

County and municipal exemptions must include an effective date of September 1 and specify duration in fiscal year increments or perpetuity, with notice to Alabama Department of Revenue by July 1 prior to implementation.

Counties and municipalities may rescind tax exemptions effective September 1 of any fiscal year by providing notice to the Department of Revenue by July 1.

Existing county or municipal tax exemptions adopted under prior general laws cease to be effective September 1, 2025, unless the county or municipality complies with the new requirements for resolution, effective date, and Department of Revenue notice.

The Alabama Department of Revenue shall publish and maintain a listing of all county and municipal sales and use tax exemptions and may adopt rules to administer this section.