HB149 Alabama 2014 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Ron Johnson
Republican
Session: Regular Session 2014
Title: Sales tax, automotive batteries, sales tax to be due on the net price less any exchanges, Sec. 40-23-2 am'd.
Summary: HB149 changes how sales tax is calculated when trading in a used automotive battery for a new one, taxing the net price instead of the full price.
What This Bill Does
The bill removes the current exception that requires sales tax to be paid on the full price of a new automotive battery when a used battery is traded in. Instead, tax would be charged on the net price, which is the price of the new battery minus the credit for the returned old battery. The act becomes effective on the first day of the third month after the governor approves it.

Who It Affects
Consumers buying a new automotive battery who trade in an old battery: they would pay sales tax based on the net price (new battery price minus the old battery credit) rather than the full price.
Automotive battery retailers and mechanics: they must apply the net-price tax method and document the trade-in credit for the old battery when calculating sales tax.
State and local revenue authorities: tax revenue from battery trades would be collected under the net-price approach, potentially affecting receipts compared to the previous full-price method.

Key Provisions
Amends Section 40-23-2 to delete the exception that batteries are not included in the net-price trade-in tax, making the sale of a new automotive battery subject to net-price tax when a used battery is traded in.
Defines net price as the price of the new battery minus the credit for the returned old battery for calculating the tax.
Sets the effective date as the first day of the third month following passage and governor 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: Taxation