HB126 Alabama 2021 Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

Regular Session 2021

Title

Taxation, update of entities exempt from sales and use tax based on certification, Secs. 40-9-15, 40-9-29 repealed; Secs. 40-9-12, 40-9-13, 40-9-25.2, 40-9-25.10, 40-9-26, 40-9-28, 40-23-5 am'd.

Summary

HB126 would require statutorily exempt entities to hold and maintain a current exemption certificate to qualify for sales and use tax exemptions, repealing exemptions for those without one.

What This Bill Does

It limits sales and use tax exemptions to entities that have a current exemption certificate and updates several sections of the tax code accordingly. It repeals exemptions for entities that have not obtained or are not retaining a current exemption certificate. The bill covers a wide range of organizations (including charities, youth groups, hospitals, and foundations) and makes their exemption status depend on certificate retention. The effective date is the first day of the third month after the bill is passed and approved by the Governor.

Who It Affects

• Organizations with a valid exemption certificate: their exemptions would continue as long as they maintain the certificate.
• Organizations without a current exemption certificate: their exemptions would be repealed.

Key Provisions

• Amends Sections 40-9-12, 40-9-13, 40-9-25.2, 40-9-25.10, 40-9-26, 40-9-28, and 40-23-5 to limit exemptions to entities that have a current exemption certificate.
• Repeals Sections 40-9-15 and 40-9-29 relating to exemptions for entities that have not obtained or are not retaining a certificate.
• Keeps exemptions for many named organizations only if they have and maintain a Certificate of Exemption; examples include YMHA/JCC, Boy Scouts, Girl Scouts, United Way, American Cancer Society, and similar groups.
• Shifts administration to require ongoing certificate retention as a condition for exemption and to guide which entities remain exempt.
• Effective date: becomes law on the first day of the third month after Governor’s approval.

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

Subjects

Taxation