HB480 Alabama 2020 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Kyle South
Republican
Session: Regular Session 2020
Title: Tuscaloosa Co., sales and use taxes, collection clarified, retroactive to Mar. 1, 2020, Act No. 56, 1953 Regular Session, as amended by Act No. 94-554, 1994 Regular Session, Act No. 96-554, 1996 Regular Session, and Act No. 2015-202, 2015 Regular Session, am'd.
Summary: HB480 clarifies and applies Tuscaloosa County's sales and use taxes, including coal mining machinery, retroactively to March 1, 2020.
What This Bill Does
The bill updates how the county can levy and collect taxes on sales and purchases in Tuscaloosa County, clarifying previous amendments. It sets specific tax rates for different categories, including general sales, admissions, autos, mining machinery, and coal-related machines, and creates a separate special county tax that municipalities in the county may adopt with exemptions. It also provides for credits when taxes are paid to municipalities within the county and aligns use taxes with the corresponding sales taxes, with exemptions such as school lunches. The changes are retroactive to March 1, 2020 and require retailers to collect these taxes from buyers and follow similar procedures as state taxes.

Who It Affects
Retail businesses in Tuscaloosa County: must collect the county sales and use taxes from customers and follow the listed rate structures and exemption rules.
Consumers and purchasers in Tuscaloosa County: will pay the county sales and use taxes on eligible purchases and may benefit from certain exemptions or credits when applicable.
Municipal governments within Tuscaloosa County: are exempt from the county’s special sales/use taxes, and merchants can receive credits for taxes paid to the municipalities.
Universities and higher education institutions in the county (e.g., University of Alabama): treated as taxable entities under the county tax structure and subject to the same collection requirements.

Key Provisions
Section 2: The act clarifies how prior amendments affect the levy and collection of county sales and use taxes and makes the provisions retroactive to March 1, 2020.
Section 3: Establishes general county sales tax rates, including 3% on most retail sales, 3% on admissions, 0.75% on automotive vehicles, 1 1/8% on machines used in mining/quarrying/processing/manufacturing, and 9/16% on coal-related machines; includes exemptions (e.g., school lunches) and requires collection by sellers.
Section 3A: Creates a special county sales tax with a Maximum Rate, applying similar category rates; municipalities inside the county have exemptions and buyers can receive credits for taxes paid to municipalities.
Section 4: Imposes the county use tax with rates parallel to Section 3 (3% general; 0.75% for vehicles; 1 1/8% for mining machines; 9/16% for coal machines), including exemptions, credits for municipal use taxes, and merchant collection duties.
Section 4A: Creates a special county use tax with Maximum Rate and similar municipal exemption/credit provisions; aligns procedures with state use tax statutes for administration and appeal processes.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Tuscaloosa County