Budget & Taxes (Sales Tax)

passed · Alabama · House Feb 25, 2026

HB 244: Taxation; Energy use in commercial greenhouses, pivot irrigation systems, and poultry houses, exempt from utility gross receipts and utility service use tax

HB 244 exempts electricity and natural gas used in commercial greenhouses, pivot irrigation systems, and poultry houses from Alabama’s utility gross receipts tax and utility service use tax. This directly affects agricultural businesses operating these facilities by reducing their energy-related tax burden. The bill amends Alabama tax code sections to explicitly add these uses to existing exemptions, clarifying that energy used for heating or operation in these specific agricultural settings is not subject to the taxes. The change takes effect September 1, 2026, and does not alter tax rates for other energy uses.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts agricultural energy use from taxes, reducing state revenue and weakening tax collection in this sector.95% confidence

Sub-Topics Business Taxes Sales Tax

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signed · Alabama · Senate Apr 17, 2026

SB 159: Taxation; Energy use in commercial greenhouses, pivot irrigation systems, and poultry houses, exempt from utility gross receipts and utility service use tax

SB 159 would exempt commercial greenhouses, pivot irrigation systems, and poultry houses in Alabama from paying utility gross receipts tax and utility service use tax on natural gas or electricity used for heating or energy purposes. This directly affects agricultural businesses operating these facilities by reducing their energy-related tax burden. The bill amends Alabama’s tax code to specifically add these uses to existing exclusions, meaning these businesses would no longer pay these taxes on qualifying energy consumption. The measure is pending in the Senate Finance and Taxation Committee and would take effect on September 1, 2026, if enacted.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts agricultural energy use from taxes, providing targeted tax relief to specific businesses per bill's intent.90% confidence

Sub-Topics Business Taxes Sales Tax

signed · Alabama · Senate Apr 17, 2026

SB 221: Taxation; to exclude credit card transaction fees from sales and use tax calculations

SB 221 would change Alabama's sales tax rules by excluding credit card transaction fees from the taxable amount when customers pay by card. Specifically, merchants would no longer include fees charged by credit/debit card networks (e.g., interchange fees) when calculating sales or use tax on purchases. This directly affects merchants who currently pay tax on the total amount charged to customers, including these fees. The bill requires the Department of Revenue to create implementation rules and takes effect September 1, 2026.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExcludes credit card fees from taxable base, reducing state sales tax revenue. Directly weakens tax collection mechanism under Budget & Taxes.90% confidence

Sub-Topics Business Taxes Sales Tax

passed · Alabama · House Jan 20, 2026

HB 87: Taxation; to exempt sales of deer feed from sales and use taxes

HB 87 exempts sales of deer feed (specifically shelled corn sold for wild deer consumption) from Alabama's state sales and use taxes. It also allows counties and municipalities to choose whether to exempt deer feed sales from local taxes. The bill directly affects businesses selling deer feed and local tax authorities, changing how these sales are taxed at both state and local levels. The exemption takes effect on September 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts deer feed from state sales tax, providing tax relief and directly altering tax policy per bill's explicit language.95% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Alabama · Senate Jan 13, 2026

SB 18: Taxation; state privilege tax on revenues of pari-mutuel wagering activities, levied

SB 18 would impose a new 4% state tax on net gambling revenues from historical horse racing pari-mutuel wagering operations. It applies specifically to licensed businesses running historical horse racing betting, replacing their existing privilege taxes with this single rate. The tax base excludes free bets, promotional credits, and prize payouts, while explicitly preserving current tax structures for live horse racing, greyhound racing, and simulcast operations. The bill does not authorize new gambling activities or alter existing legal gambling frameworks.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new 4% tax on gambling revenues, increasing state budget revenue without defunding programs or targeting lower-income groups.95% confidence

Sub-Topics Business Taxes Sales Tax

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passed · Alabama · House Feb 25, 2026

HB 4: Taxation; establishes Alabama Broadband Investment Maximization Act; exempts ADECA project funded or administered purchases from sales and use tax

HB 4 establishes the Alabama Broadband Investment Maximization Act, exempting purchases of broadband equipment and supplies for projects funded or administered by the Alabama Department of Economic and Community Affairs (ADECA) from state sales and use taxes. This directly affects ADECA-funded broadband infrastructure projects by reducing their costs. The exemption covers equipment like cables, antennas, and routers used for broadband services or internet access, but excludes personal devices such as smartphones and consumer routers. The tax exemption applies from September 1, 2026, through August 31, 2029, and does not extend to local county or municipal taxes unless specifically approved.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts ADECA broadband equipment purchases from sales tax, reducing project costs and supporting infrastructure funding under fiscal responsibility.95% confidence ✓ TechnologySupports TechnologyExempts broadband equipment from taxes, reducing costs for infrastructure projects and expanding internet access per bill's explicit purpose.90% confidence

Sub-Topics Sales Tax Tax Incentives Broadband Access

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in committee · Alabama · Senate Jan 13, 2026

SB 13: Taxation; Energy use in poultry houses, exempt from utility gross receipts and utility service use tax

SB 13 would exempt Alabama poultry producers from paying state utility taxes on natural gas, propane, or electricity used specifically for heating poultry houses. The bill amends existing tax code sections to explicitly add poultry house heating to the list of exempt energy uses, removing a current tax burden on this operational cost. This change directly affects poultry farms by reducing their energy expenses for maintaining proper temperatures in housing facilities. The exemption would apply to energy purchased and consumed directly for heating purposes, effective September 1, 2026, pending legislative approval.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts poultry producers from utility taxes on heating, reducing tax burden and providing targeted tax relief per bill's explicit amendment to tax code.95% confidence

Sub-Topics Sales Tax

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passed · Alabama · Senate Apr 7, 2026

SB 10: Tuscaloosa County; levy of additional or increased county or municipal sales and use tax prohibited without approval by referendum, constitutional amendment

SB 10 proposes a constitutional amendment in Alabama that would require Tuscaloosa County voters to approve any new or increased county or municipal sales and use tax through a majority vote at a referendum held during a regular general election. The amendment mandates at least two public hearings and 60 days of newspaper notice before any such tax vote. It directly affects Tuscaloosa County residents and local governments by preventing tax increases without voter consent, ensuring community input before new tax levies take effect.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill prohibits local tax increases without voter approval, restricting county/municipal tax levies and requiring referendum approval.90% confidence

Sub-Topics Sales Tax

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passed · Alabama · House Apr 7, 2026

HB 3: Taxation; to exempt certain retail sales of fish or other seafood from sales and use taxes

HB 3 exempts state sales and use taxes on fresh, unprocessed fish or seafood sold directly by anglers or fishermen (defined as "producers" in the bill). This applies only to retail sales of seafood in its original, unmanufactured state. Local counties and municipalities may choose to also exempt these sales from local taxes, but only if they adopt a specific resolution or ordinance. The exemption takes effect on September 1, 2026.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts seafood sales from taxes, reducing state tax revenue and weakening fiscal collection under taxation policy.90% confidence

Sub-Topics Revenue Sales Tax Tax Incentives

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in committee · Alabama · House Mar 19, 2026

HB 15: Taxation, sales tax exemptions, sales and use tax exemption with local option provided for purchases of optical aids, including eyeglasses and contact lenses.

HB 15 would exempt eyeglasses and contact lenses from Alabama's sales and use tax. Currently, these items are taxed under state law, but the bill would remove that tax obligation. This change would directly affect consumers purchasing optical aids and retailers selling them, as they would no longer pay or collect tax on these items. The bill amends Alabama Code Section 40-23-1 to add eyeglasses and contact lenses to the list of tax-exempt products.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts essential optical aids from sales tax, providing direct tax relief to consumers purchasing necessities.90% confidence ✓ HealthcareSupports HealthcareExempts vision care devices from sales tax, reducing costs and improving access to essential medical aids for patients.85% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

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