The bill, HB51, amends Section 40-23-4 of the Code of Alabama 1975 to introduce a new sales and use tax exemption specifically for hearing instruments, including hearing aids. The legal language added states that the gross proceeds from the sale of hearing instruments are exempt from sales and use tax, effective from October 1, 2024, to September 30, 2029, unless extended by the Legislature. This exemption aims to reduce the financial burden on individuals requiring hearing aids, making them more accessible. Additionally, the bill clarifies that this exemption will not apply to county or municipal sales taxes unless approved by local governing bodies.

In addition to the hearing aid exemption, the bill expands existing sales tax exemptions for various goods and services, including agricultural products, aviation-related transactions, and specific medical supplies. Notable insertions include exemptions for sales related to commercial fishing, antibiotics for livestock, and producer value-added agricultural products sold by the producer or their immediate family. The bill also maintains existing exemptions while streamlining the tax code for these sectors. It outlines penalties for violations, with fines ranging from $500 to $2,000 and potential imprisonment, and is set to take effect on September 1, 2024.

Statutes affected:
Introduced: 40-23-4
Engrossed: 40-23-4
Enrolled: 40-23-4