SB245 Alabama 2015 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2015

Title

Sales tax, entities exempt required to initially pay sales tax and later seek refund of exempted state tax amounts, Department of Revenue authorized to promulgate rules

Summary

SB245 would require entities exempt from Alabama sales tax to pay the tax at the time of purchase and then file an annual return to obtain a refund of the exempt portion, with rules to be set by the Department of Revenue.

What This Bill Does

If enacted, entities exempt from Alabama sales tax must pay the tax when they make purchases. They can file an annual return with the Department of Revenue to receive a refund for the portion of sales tax that was exempt, based on documentation of exempt purchases. The Department would issue implementing rules, the first annual return would cover the 2016 year and be due by January 20, 2017, and the law would take effect after the governor signs it.

Who It Affects

• Entities exempt from Alabama sales tax (as listed in Title 40, Chapter 23) must pay tax at purchase time and may receive a refund by filing an annual return.
• The Alabama Department of Revenue would implement and administer the new rule system and process refunds.

Key Provisions

• Exempt entities must pay the Alabama sales tax at the time of purchase.
• Exempt entities may electronically file an annual return with the Department of Revenue by January 20 each year to receive a refund of the exempt amount, with documentation required by the Department.
• The first annual return would cover the 2016 calendar year and be due by January 20, 2017.
• The Department of Revenue must promulgate rules to implement the provisions prior to January 1, 2016.

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

Subjects

Tax Exemptions