HB26 Alabama 2015 Session

Summary

Primary Sponsor

Ron Johnson

Republican

Session

Regular Session 2015

Title

Sales tax, automotive batteries, sales tax to be due on the net price less any exchanges, Sec. 40-23-2 am'd.

Summary

HB26 would require sales tax on trading in an old automotive battery for a new one to be calculated on the net price after the trade-in credit, removing an exception that taxed the full price.

What This Bill Does

Deletes the battery-specific exception that required tax to be paid on the full purchase price when an old automotive battery is traded for a new battery. Taxes the new battery based on its net price after subtracting the credit for the returned old battery. Brings the treatment of batteries in line with how other used-part trades are taxed under the same section. Keeps the existing overall tax framework and revenue allocation rules already in the statute for related vehicle and parts transactions.

Who It Affects

• Consumers who buy a new automotive battery and trade in an old battery; their sales tax would now be calculated on the net price after the trade-in credit.
• Automotive battery retailers and repair shops that handle battery trade-ins; they would assess and collect tax based on the net price after applying the old-battery credit.

Key Provisions

• Amends Section 40-23-2 to remove the exception that battery trade-ins are taxed on the full price.
• Specifies that sales tax on a new battery with a traded-in old battery is based on the net price after credit for the old battery.
• Retains the broader structure of Section 40-23-2 for other taxed items and the associated revenue allocation provisions.
• Effective date: the act becomes effective on the first day of the third month after passage/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