SB378 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Tom Whatley
Republican
Session: Regular Session 2011
Title: Lee Co., sales and use tax, county commission authorized to levy outside corporate limits of Auburn, Opelika, and Phenix City, Act 1254, 1969 Sp. Sess.; Act 89-629, 1989 Reg. Sess. am'd.
Summary: SB378 would allow Lee County to levy local sales and use taxes outside Auburn, Opelika, and Phenix City, mirroring state taxes with a total cap of 1% and differing rates for the Phenix City area.
What This Bill Does
It authorizes the Lee County Commission to assess and collect local sales and use taxes outside the three city limits, generally paralleling the state's tax structure. The overall rate cannot exceed 1%, and the tax could apply to retail sales, amusements, certain machinery, and vehicle sales, with specific rates for each category (mostly 1% for goods and 3/8 of 1% for machinery and vehicles; a $1.25 yearly fee applies when stock is withdrawn for use). In the part of Lee County that lies within Phenix City’s police jurisdiction, the tax rate would be half of the rate charged in the other outside areas. There are also storage/use taxes on tangible personal property (1% in most cases, with 3/8 of 1% for mining/manufacturing machinery and 3/8 of 1% for vehicles), and exemptions exist for certain vending-machine sales of inexpensive items if specific records and sworn statements are filed.

Who It Affects
Businesses operating in the affected areas of Lee County (retailers, wholesalers, amusement venues, machinery dealers, and vehicle dealers) who would owe and remit these local taxes and keep records as required.
Residents and consumers in the Lee County areas outside Auburn, Opelika, and Phenix City (including the Phenix City police jurisdiction area) who would pay the new local taxes on purchases, admissions, and use of taxable property.

Key Provisions
Lee County Commission is authorized to levy and collect local sales and use taxes outside the corporate limits of the three cities, paralleling state taxes, with a total rate not to exceed 1%.
In the area of Lee County outside Auburn/Opelika, rates apply as follows: 1% on gross proceeds from retail sales, 1% on gross receipts from amusements, 3/8 of 1% on sales of machinery, and 3/8 of 1% on sales of automotive vehicles and trailers (with a $1.25 annual fee if such stock is withdrawn for use).
In the portion of Lee County within Phenix City’s police jurisdiction, the tax rate is one-half the rate charged in the other outside areas.
An excise tax is imposed on storage/use/consumption of tangible personal property outside the three cities (1% generally; 3/8 of 1% for certain machines; 3/8 of 1% for vehicles), with net differences allowed for traded-in used items.
Exemptions include certain vending-machine sales of peanut products, milk products, coffee, and confections up to 10 cents per sale, if all sales meet that pattern and the operator files a sworn statement and maintains records.
Section 2 clarifies that the levy applies only outside Auburn, Opelika, and Phenix City, and that the rate cannot exceed 1%, with taxes generally paralleling the state’s framework but not being measured by gross receipts except as a parallel sales/use tax.
The act becomes effective immediately after passage and the governor's approval.

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