HB129 Alabama 2014 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Mary Sue McClurkinCity Council
Republican
Session: Regular Session 2014
Title: Private schools, colleges, universities, sale of tangible property, including lunches sold within school buildings continue to be exempt from state and local sales and use taxes, Secs. 40-23-4, 40-23-62 am'd.
Summary: HB129 clarifies and expands tax exemptions for private schools and their lunches in Alabama, with retroactive effect and no refunds for periods before it took effect.
What This Bill Does
The bill exempts the gross proceeds from sales of tangible personal property by private schools, colleges, and universities in Alabama, and the storage or use of that property, from state and local sales and use taxes. It also exempts lunches sold within school buildings to pupils in public or private schools. The exemptions are applied retroactively to all open tax periods with no refunds for periods prior to the act’s effective date, and the act becomes effective immediately after approval.

Who It Affects
Private schools, colleges, and universities in Alabama — their sales and storage/use of tangible property are exempt from state and local sales and use taxes, and lunches sold to students in school buildings are exempt.
Local taxing authorities and school districts in Alabama — may experience reduced tax revenue due to the new exemptions.

Key Provisions
Amends Sections 40-23-4 and 40-23-62 to provide exemptions for private schools, colleges, and universities from state/local sales and use taxes on gross proceeds of sales and on storage/use of tangible personal property, and exempts lunches sold within school buildings to pupils (not for profit).
Lunch exemption applies to lunches in school buildings for pupils of kindergarten through high school, for both public and private schools.
Retroactive effective date: applies to all open tax periods and periods with potential assessments; no refunds for periods before the effective date.
Effective date: immediately after passage and governor's approval.

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