SB536 Alabama 2010 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Co-Sponsors

Vivian Davis FiguresGeorge M. “Marc” KeaheyWendell MitchellBobby D. SingletonPriscilla DunnLinda Coleman-MadisonLowell BarronHinton MitchemRoger Bedford, Jr.Quinton RossBobby DentonLarry MeansZeb LittleJimmy Holley

Session

Regular Session 2010

Title

Motor vehicles, new passenger vehicle or new truck manufactured within this state, tax rate removed for certain period, Sec. 40-23-2, 40-23-61 am'd.

Summary

The bill would temporarily waive Alabama's sales tax on the sale of new passenger vehicles or new trucks manufactured in Alabama, through December 31, 2011.

What This Bill Does

It would remove the tax rate for those in-state-made new vehicles by amending Sections 40-23-2 and 40-23-61. The waiver would take effect immediately upon passage and expire on December 31, 2011. Sales of new vehicles not made in Alabama, and all used vehicles, would continue to be taxed as before. Additionally, the normal split of the tax revenue—58% to the Education Trust Fund and 42% to the State General Fund—would not apply to these waived sales.

Who It Affects

• Buyers of new passenger vehicles or new trucks manufactured in Alabama would pay no sales tax on qualifying purchases during the waiver period.
• Vehicle dealers and retailers selling these in-state-made new vehicles would not collect the tax on qualifying sales and would see reduced state tax revenue allocated to Education Trust Fund and General Fund from those sales.

Key Provisions

• Waives the tax rate on the sale of new passenger vehicles or new trucks manufactured in Alabama through December 31, 2011.
• Amends Sections 40-23-2 and 40-23-61 to implement the waiver.
• Effective date is immediate upon passage; expiration is December 31, 2011.
• Sales of new vehicles not manufactured in Alabama and all used vehicles remain taxed as currently required; normal revenue splits to Education Trust Fund (58%) and State General Fund (42%) apply only to taxed transactions.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles