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 inserted legal language states that the gross proceeds from the sale of these instruments will be 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. The bill also 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 maintains existing exemptions in Section 40-23-4, which cover various agricultural products and sales to government entities. It also includes new exemptions for items such as lifeboats, personal flotation devices, and fuel oil for kiln use, while streamlining language and removing certain provisions for clarity. The bill specifies that gross receipts from sales of domestically mined coal and certain metals are exempt under defined conditions, and it establishes penalties for violations of the new provisions. Overall, HB51 aims to support various sectors, including healthcare, agriculture, and aviation, by reducing tax burdens and promoting economic activity in Alabama.

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