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 stated in a resolution or ordinance approved by the county or municipality, which must also specify an effective date of September 1 and the duration of the exemption. Additionally, the county or municipality must notify the Alabama Department of Revenue by July 1 prior to the exemption's effective date.

Furthermore, the bill allows counties or municipalities to rescind such exemptions under similar conditions, requiring a resolution or ordinance and notification to the Department of Revenue. 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 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