The bill amends Sections 40-9-30 and 40-9-60 of the Code of Alabama, 1975, to introduce new requirements for health care providers regarding sales tax exemption on purchases of certain durable medical equipment and medical supplies. The bill specifies that, starting September 1, 2024, health care providers seeking to claim an exemption must obtain and maintain a certificate of exemption from the Department of Revenue prior to making exempt purchases and must provide this certificate to the seller at the time of purchase. This is a new insertion into the existing law.

The bill also outlines the definitions and conditions under which durable medical equipment, medical supplies, and related items are exempt from state, county, and municipal sales, use, and rental and leasing taxes. It further details the process for obtaining and renewing certificates of exemption, the validity period of these certificates, and the consequences of failing to obtain or renew a certificate or misusing it. The bill includes insertions that modify the existing law to clarify that the requirements apply to entities with a general exemption from sales, use, or lodging taxes, and it also includes deletions that remove redundant language. The bill is set to become effective immediately upon its passage.

Statutes affected:
Introduced: 40-9-30, 40-9-30