The bill amends Sections 40-9-30 and 40-9-60 of the Code of Alabama, 1975, to require certain health care providers to obtain a certificate of exemption from the Department of Revenue in order to make sales tax-exempt purchases of specific durable medical equipment and medical supplies. The new provisions stipulate that beginning September 1, 2024, health care providers claiming an exemption must maintain this certificate and present it to the seller at the time of purchase. The bill also clarifies the definition of "durable medical equipment" and expands the list of exempt items to include various medical supplies and devices covered by Medicare, Medicaid, or health benefit plans.

Additionally, the bill modifies the existing requirements for obtaining a certificate of exemption, mandating that all entities, except governmental ones, must acquire this certificate annually. It introduces penalties for misuse of the exemption certificate and allows the Department of Revenue to implement rules for compliance and reporting. The language changes include the insertion of new requirements for health care providers and the deletion of outdated provisions regarding the applicability of the exemption. The act is set to take effect immediately upon passage.

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