SB28 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Clyde ChamblissSenator

Republican

Session

Second Special Session 2015

Title

Sales tax, exemption for certain motor vehicles, motorcycles, trucks, and semi-trailers exported or removed from this state, eliminated under certain conditions, Sec. 40-23-2 am'd.

Summary

SB28 would limit Alabama's sales tax on export-out vehicles to no more than the tax that would be due in the state where the vehicle is first titled or registered.

What This Bill Does

The bill amends the export tax rule for vehicles bought in Alabama that will be titled or registered outside Alabama and used outside the state for the first time. Alabama tax charged for these export-out sales cannot exceed the tax the other state would charge, potentially reducing how much Alabama collects. The export tax remains Alabama tax (excluding county and municipal taxes) and requires documentation, with the government publishing a list of states that do not allow drive-out provisions; if that list is wrong, the taxpayer is relieved from liability. It also clarifies that certain vehicles (mobile homes, motors bikes, ATVs, boats) do not qualify for the export exemption, and the change takes effect January 1, 2016, while the revenue distribution from the eligible tax continues to allocate 58% to the Education Trust Fund and 42% to the State General Fund.

Who It Affects

• Alabama residents who buy autos, motorcycles, trucks, truck trailers, or semi-trailers that will be registered or titled outside Alabama and exported within 72 hours; their Alabama tax liability for these sales could be limited to the other state's tax rate.
• Dealers and other sellers handling export-out vehicle sales; they must determine and document the applicable tax rate, use forms approved by the Revenue Department, and reference the annual list of states that do not allow drive-out provisions.

Key Provisions

• Cap the Alabama sales tax on export-out vehicle sales at the amount that would be due in the state where the vehicle is first registered or titled, so Alabama cannot collect more than that amount.
• Tax remains Alabama's sales tax (excluding county and municipal taxes) and the liability is determined under the export provisions; revenue from the eligible tax continues to be split with 58% to the Education Trust Fund and 42% to the State General Fund.
• Maintain the drive-out provision (export within 72 hours) and require documentation on Revenue Department forms; annually publish a list of states that do not allow drive-out provisions, with taxpayer relief if the list is incorrect.
• Exclude certain vehicles (mobile homes, motorbikes, ATVs, boats) from the export exemption; these remain taxable unless delivered outside Alabama or to a common carrier, and the exemption applies only to specific eligible vehicles.

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