HB300 Alabama 2013 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Ron Johnson
Republican
Session: Regular Session 2013
Title: Sales and use tax, durable medical equipment, prosthetics and orthotics, and certain medical supplies, exempt when covered and paid by third party
Summary: HB300 would exempt from Alabama sales and use taxes the sale of durable medical equipment, prosthetics and orthotics, and related medical supplies when sold with a valid prescription and billed to a third‑party payer, with retroactive reach and a future start date.
What This Bill Does
It creates a state and local sales tax exemption for durable medical equipment, prosthetics/orthotics, and Medicare-defined medical supplies when sold under a valid prescription and billed to a third-party payer. The exemption covers items such as repair parts, disposable supplies, medical oxygen equipment, ostomy supplies, catheters, and wound care products. It applies retroactively to open tax periods and periods where an assessment could be entered, but refunds are not available for periods before the effective date. The exemption becomes effective on October 1, 2014 (the first day of the third month after passage and approval).

Who It Affects
Patients and consumers who need durable medical equipment and related supplies would not pay state or local sales tax when the purchase meets the prescription and third-party billing conditions.
Medical equipment sellers, suppliers, and third-party payers would implement and manage the exemption for qualifying sales.

Key Provisions
Exempts from state, county, and municipal sales and use taxes the sale of durable medical equipment, prosthetic/orthotic devices, and Medicare-defined medical supplies when sold with a valid prescription and billed to a third-party payer.
Includes repair parts and disposable or single-use supplies necessary for the use of such equipment, plus medical oxygen equipment and related supplies.
Provides retroactive application to all open tax periods and all periods for which a tax assessment could be entered; no refunds shall be issued for periods prior to the effective date.
Effective date is the first day of the third month after passage and governor's approval, with the act becoming law on October 1, 2014; supplements existing exemptions and does not repeal other laws not in direct conflict.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Health