HB390 Alabama 2019 Session

Summary

Primary Sponsor

Kerry Rich

Republican

Session

Regular Session 2019

Title

Taxation, adaptive equipment, exempt from sales and use taxes, Sec. 40-23-4 am'd.

Summary

HB 390 would exempt the initial sale of adaptive equipment permanently installed in a motor vehicle from Alabama sales and use tax.

What This Bill Does

It creates a state sales tax exemption for the first retail sale of adaptive equipment that is permanently affixed to a motor vehicle. Adaptive equipment is defined as items not normally used by people with normal mobility and not usually provided by the vehicle manufacturer. To qualify, the seller must separately itemize the adaptive equipment on the bill of sale.

Who It Affects

• Individuals with mobility impairments who purchase adaptive equipment for their vehicles in Alabama, as they would pay no sales tax on the initial purchase.
• Retailers, dealers, and installers of adaptive equipment, who must ensure the item is separately stated on the customer’s bill to qualify for the exemption.

Key Provisions

• Exemption: Section 40-23-4(a)(52)(a) provides that the gross proceeds of the initial retail sale of adaptive equipment permanently affixed to a motor vehicle are exempt from sales and use tax.
• Definitions: Section 40-23-4(a)(52)(b) defines adaptive equipment, motor vehicle, and motor vehicle manufacturer for the purposes of the exemption.
• Billing requirement: Section 40-23-4(a)(52)(c) requires the adaptive equipment to be separately stated on the bill of sale or equivalent documentation.
• Effective date: Section 2 states the act becomes effective on the first day of the third month after its passage and approval (roughly August 2019).

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