The bill introduces the Alabama Adventure Awaits sales tax holiday, exempting certain outdoor-related items from state sales and use tax to promote local shopping for outdoor activities and support the Second Amendment. Covered items include a variety of outdoor and recreational equipment, such as boating supplies, camping gear, sports equipment, fishing supplies, gun safes, and hunting supplies, with specified price limits for eligibility. The bill sets the annual sales tax holiday from the first Friday in May until the following Sunday and allows local governments to opt-in to exempt these purchases from local taxes with a 90-day notice. The holiday is scheduled to expire on December 31, 2027, unless extended, and the bill includes the creation of a new section in the Code of Alabama 1975 for price adjustments based on the Consumer Price Index.

HB257 Engrossed mandates adjustments to certain dollar amounts in the Code of Alabama 1975 based on the Consumer Price Index (CPI) for the calendar year 2025, with the first adjustment reflecting the CPI increase from December 2006 to December 2023 for Section 40-23-210, and from December 2012 to December 2023 for Section 40-23-230. These adjustments will occur every five years and are to be rounded to the nearest whole dollar. The bill's effectiveness is contingent on the enactment of House Bill 258 of the 2024 Regular Session related to the simplified sellers use tax and is set to become effective on October 1, 2024. The bill passed the House with unanimous support. Specific insertions or deletions from the current law are not mentioned in the summary provided.

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