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, approved by a resolution or ordinance from the county or municipality, and communicated to the Alabama Department of Revenue by July 1 prior to the exemption's effective date of September 1. Additionally, counties or municipalities can rescind such exemptions under similar conditions.

The bill also clarifies that it does not affect existing laws that provide exemptions from county or municipal sales and use taxes that do not require a resolution or ordinance for effectiveness. However, any new exemptions adopted under prior general laws must comply with the new requirements, or they 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 create rules for their administration. The act is set to take effect immediately upon passage.

Statutes affected:
Enrolled: 40-9-14