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 a designated period each year, from 12:01 a.m. on the first Friday in May until midnight the following Sunday. The bill defines "covered items" to include various outdoor supplies such as boating and water activity supplies, camping gear, sports equipment, fishing supplies, gun safes, gun safety devices, and hunting supplies, each subject to specific price limits. Local governments are also given the option to provide similar exemptions for their sales and use taxes, provided they adopt the necessary resolutions or ordinances at least 90 days prior to the holiday.

Additionally, the bill amends existing provisions in the Code of Alabama 1975, changing the notice period for local opt-in sales tax holidays from 30 days to 90 days. It introduces a mechanism for adjusting the price limits of covered items based on the Consumer Price Index (CPI) every five years, starting in 2030. The bill also mandates the Alabama Department of Revenue to adjust certain dollar amounts based on the CPI, specifically for Sections 40-23-210 and 40-23-230, with the first adjustment occurring for the calendar year 2025. The bill is set to take effect on October 1, 2024, contingent upon the enactment of House Bill 258 during the 2024 Regular Session. No deletions from current law are noted, as the bill primarily focuses on new insertions.

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