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

Additionally, the bill modifies the existing requirements for obtaining and renewing certificates of exemption, stating that all entities, except governmental ones, must acquire these certificates 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 The language changes include the insertion of provisions regarding the certificate of exemption and the deletion of outdated language regarding the applicability of the article. The act is set to take effect immediately upon passage.

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