SB120 Alabama 2017 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2017

Title

Sales and use tax, exemptions, standardized, certain sales and use tax exemptions, provided, Secs. 40-23-4, 40-23-62 am'd.

Summary

SB120 standardizes Alabama's sales and use tax exemptions, codifies a learned-professional service exemption, and provides a limited grandfather for pre-2017 photography sales, with retroactive application to open tax years and immediate effectiveness.

What This Bill Does

It standardizes exemptions so sales and use taxes align and some exemptions move between the sales tax and use tax. It codifies exemptions for certain learned professionals (accountants, attorneys, physicians) from sales tax on their services, but photographers/commissioned portrait services remain taxable. It provides a limited grandfather for sales of photographs or commissioned portraits before October 1, 2017, so those sales do not require remittance of sales or use tax unless tax was collected, and it restricts refunds for such cases. It applies retroactively to open tax years and periods, and takes effect immediately after passage.

Who It Affects

• Consumers and businesses in Alabama who pay or collect sales/use tax; they may see more uniform rules and potential shifts in how exemptions apply.
• Sellers and service providers in Alabama, including learned professionals (who may gain sales tax exemptions for services) and photographers (whose services remain taxable); the pre-2017 photography sales have special retroactive rules, and open-year assessments may be affected.

Key Provisions

• Standardizes sales and use tax exemptions and aligns current exemptions, moving some exemptions from sales tax into the use tax law.
• Codifies the exemption for certain learned professionals (accountants, attorneys, physicians) from sales tax on services; photographers/portrait services are not exempt.
• Creates a grandfathering rule for sales of photographs or commissioned portraits made before October 1, 2017, limiting collection/remittance requirements and refunds, with final assessment considerations.
• Applies retroactively to all open tax years/periods with assessments and becomes effective immediately upon passage.

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