The bill, HB257 Engrossed, introduces the Alabama Adventure Awaits sales tax holiday, exempting certain outdoor-related items from state sales and use tax. The holiday aims to promote local shopping for outdoor activities, support the Second Amendment, and encourage family time outdoors. It defines "covered items" to include a variety of outdoor and recreational equipment, such as boating and camping gear, sports equipment, fishing supplies, gun safes, and hunting supplies, with specific price limits for eligibility. The bill also allows local counties and municipalities to opt-in to exempt these purchases from local sales and use taxes by passing a resolution or ordinance at least 90 days before the holiday. The holiday is scheduled annually from the first Friday in May until the following Sunday and is set to expire on December 31, 2027, unless extended by the Legislature. The bill includes the creation of Section 40-23-210.1 to address price adjustments based on the Consumer Price Index.

Additionally, HB257 Engrossed amends the Code of Alabama 1975, requiring the Alabama Department of Revenue to adjust the dollar amounts specified in sections 40-23-210 and 40-23-230 according to the Consumer Price Index for all urban consumers (CPI-U) for the calendar year 2025, with the first adjustment based on CPI-U changes 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 be made every five years after the initial adjustment in 2025. The bill's enactment is contingent upon the passage of House Bill 258, related to the simplified sellers use tax, and if both bills are enacted, HB257 will take effect on October 1, 2024. The bill has been unanimously voted in favor by the legislature.

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