The proposed bill establishes the "Alabama Adventure Awaits" sales tax holiday, which will exempt specific outdoor-related items from state sales and use tax during an annual period aimed at promoting outdoor activities such as hunting, fishing, camping, and youth sports. The bill defines "covered items" to include various outdoor supplies like boating equipment, camping gear, sports equipment, fishing supplies, and hunting accessories, each with designated price limits. The sales tax holiday is set to occur from 12:01 a.m. on the first Friday in May until midnight the following Sunday each year. Additionally, the bill amends local opt-in provisions for sales tax holidays, extending the notice period for counties and municipalities from 30 days to 90 days prior to the holiday, and introduces a mechanism for adjusting price limits based on the Consumer Price Index (CPI) every five years, starting in 2030.

Furthermore, the bill amends the Code of Alabama 1975 by inserting new provisions that require the Alabama Department of Revenue to adjust certain dollar amounts based on the CPI. Specifically, it mandates adjustments for the dollar amounts in Sections 40-23-210 and 40-23-230, using the CPI percentage increase from December 2006 to December 2023 and December 2012 to December 2023, respectively, rounded to the nearest whole dollar and repeated every five years thereafter. The bill is set to take effect on October 1, 2024, contingent upon the enactment of House Bill 258 from the 2024 Regular Session, which relates to the simplified sellers use tax. There are no deletions from current law in this bill; it focuses solely on the insertion of new provisions.

Statutes affected:
Introduced: 40-23-210, 40-23-230
Engrossed: 40-23-210, 40-23-230