This bill changes how Alabama taxes consumable vapor products by calculating the excise tax based on the nicotine content rather than just the volume of liquid. Under the new rules, products with more than six milligrams of nicotine per milliliter will be taxed at ten cents per milliliter, while those with six milligrams or less will be taxed at five cents per milliliter. Additionally, the legislation mandates that all vapor product labels clearly state the amount of nicotine and the total liquid volume. Manufacturers and retailers who fail to include this required information on their products face civil penalties, with fines ranging from $1,000 for a first offense to permit revocation for repeated violations. The changes are scheduled to take effect on October 1, 2026.
This bill would reinstate a tax exemption for the Alabama Gulf Coast Zoo, allowing it to avoid paying state sales and use taxes on capital purchases like equipment and building materials through September 30, 2028. The legislation also permits individual counties and municipalities to choose whether to extend similar exemptions for the zoo at the local level. Currently, the zoo's tax exemption expired in September 2022, and this measure would restore that benefit to help the nonprofit organization manage its financial operations. The zoo would continue to pay all other applicable taxes and must submit annual reports to the state Department of Revenue regarding its tax-exempt sales.
This bill authorizes Autauga County, Alabama to collect two new taxes starting September 1, 2026, which will directly affect businesses and individuals operating in the county. The first provision adds a half of one percent sales and use tax on business activities, while the second establishes a three percent rental tax on leases of tangible personal property. All tax revenue collected under these provisions will go into the county general fund to support local government operations. The bill requires the county commission to create rules for collecting and administering the rental tax, following existing state procedures for the sales tax.
This bill creates the Lauderdale County Economic Development Authority to support existing businesses, attract new industries, and coordinate economic development efforts across the county. The authority will be governed by a five-member board appointed by the county commission, which can hire an executive director and manage funds through a new Economic Development Authority Fund. To finance these efforts, the bill authorizes the county commission to levy an additional sales and use tax of up to 0.75 percent, with proceeds deposited into the fund and exempting already tax-exempt businesses from the new tax. The legislation takes effect on October 1, 2026.
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This bill establishes a new 8% state privilege tax on historical horse racing activities in Alabama, which would replace all existing local taxes on these operations. The tax applies to net gambling revenue from pari-mutuel wagers on computerized historical horse racing machines, excluding promotional credits and winnings from the taxable amount. By repealing specific local tax laws in Class 1 municipalities and certain counties, the bill ensures the state tax is the only tax levied on historical horse racing, while leaving taxes on live greyhound and horse racing unchanged. The legislation would take effect on October 1, 2026, and does not authorize any new gambling activities beyond what is currently permitted by law.
This bill modifies how Alabama distributes local funds from the simplified sellers use tax, shifting the basis for allocation from the most recent federal decennial census to population projections updated every five years by the U.S. Census Bureau. The change directly affects counties and municipalities across the state by altering how they receive their share of tax proceeds, with the updated methodology beginning in 2027. Under the new system, 60% of local funds would go to municipalities and 40% to counties, with distribution ratios based on current population estimates rather than waiting for a full census. The bill also repeals existing provisions regarding the timing of tax distribution and sets the effective date for October 1, 2026.
This bill proposes to gradually eliminate the state sales tax on food in Alabama over a four-year period, starting with a one-half percent reduction on September 1, 2026, and continuing annually until food becomes fully exempt by September 1, 2029. Currently, food is taxed at a reduced rate of two percent compared to the general four percent sales tax rate, and this legislation would phase out that remaining tax. The bill also grants counties and municipalities the authority to choose to exempt food from local sales and use taxes. This change would directly affect consumers purchasing food and businesses that sell food products within the state.
HB 398 exempts the organization "High Socks for Hope" from paying state sales and use taxes. It also allows Alabama counties and municipalities to choose whether to exempt the same organization from local sales and use taxes. The bill directly affects High Socks for Hope by removing a tax burden on its sales, and local governments by giving them the option to provide the same exemption. The exemption becomes effective on September 1, 2026.
HB 531 would exempt contractors working on public highway, road, or bridge construction projects from paying state taxes on natural gas and liquefied petroleum gas (LPG) used during construction. Specifically, it removes utility gross receipts tax, utility service use tax, and state sales and use tax on these fuels for licensed contractors or subcontractors under government contracts. Counties and municipalities may also adopt similar local tax exemptions for the same purpose. The bill, set to take effect on September 1, 2026, applies only to projects funded by governmental entities as defined in Alabama law.
HB 388 exempts 10 specific community foundations in Alabama from state sales and use taxes, including the Black Belt Community Foundation, Central Alabama Community Foundation, and others listed in the bill. It extends this state tax exemption through August 31, 2031, and allows local municipalities and counties to also exempt these foundations from local sales taxes starting September 1, 2026. The bill repeals the previous tax exemption law (Section 40-9-39.4) and requires these foundations to submit annual reports to the Department of Revenue. This policy change directly affects the 10 named community foundations by removing their sales tax obligations at both state and local levels for the specified period.
