The bill establishes new conditions for the exemption of county or municipal sales and use taxes in Alabama. It stipulates that any law enacting or amending a sales and use tax exemption will only apply to state taxes unless specific criteria are met. These criteria include the requirement for the exemption to be explicitly provided for in the law, approval through a resolution or ordinance by the county or municipality, and timely notification to the Alabama Department of Revenue. The effective date for such exemptions is set for September 1 of a given year, and the duration can be either in fiscal year increments or in perpetuity.

Additionally, the bill allows counties or municipalities to rescind these exemptions under similar conditions, with the rescission also taking effect on September 1 of a fiscal year. It clarifies that existing exemptions from prior laws will remain in effect unless they do not comply with the new requirements, and any exemptions not compliant will cease to be effective by September 1, 2025. The Alabama Department of Revenue is tasked with maintaining a list of these exemptions and may adopt rules for their administration. The act is set to take effect immediately upon passage.

Statutes affected:
Enrolled: 40-9-14