HB593 Alabama 2015 Session

Summary

Primary Sponsor

Ken Johnson

Republican

Session

Regular Session 2015

Title

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

Summary

HB593 changes Alabama's vehicle export tax exemption by tying it to whether the destination state's rules allow Alabama residents to title and register the vehicle in Alabama without paying that state's tax.

What This Bill Does

It rewrites the drive-out exemption so export sales of certain vehicles within 72 hours are taxed by Alabama unless the destination state allows tax-free first titling/registration in Alabama. It adds exclusions to the drive-out provision, requires the Department of Revenue to publish annually a list of states that do not permit the drive-out provision, and requires documentation on approved forms to certify exempt sales. It also specifies distributions of the drive-out tax (58% to the Education Trust Fund and 42% to the State General Fund) and dates the measure to take effect October 1, 2015.

Who It Affects

• Alabama residents who buy motor vehicles to export and may or may not be taxed by Alabama depending on the destination state's rules for titling/registration in Alabama.
• Alabama auto dealers/sellers and the Alabama Department of Revenue, who must apply the new tax rules, maintain required documentation, publish state lists, and handle tax distributions.

Key Provisions

• Amends Section 40-23-2 to make export sales taxable in Alabama unless the destination state allows an Alabama resident to title/register in Alabama without paying that state's tax.
• Provides exclusions to the drive-out exemption and requires publication on Oct 1 of each year of a list of states that do not allow the drive-out provision.
• Specifies that the drive-out exemption does not apply to certain vehicles (mobile homes, motor bikes, ATVs, boats) unless the dealer proves delivery outside Alabama.
• Requires exemption eligibility documentation to be on forms approved by the Revenue Department.
• Allocates 58% of the drive-out tax to the Education Trust Fund and 42% to the State General Fund.
• Effective date: October 1, 2015.

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