HB625 Alabama 2021 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Co-Sponsors

Dickie DrakeDanny GarrettVictor Gaston

Session

Regular Session 2021

Title

Taxation, Community Foundation of South Alabama, Community Foundation of West Alabama, Black Belt Community Foundation, Community Foundation of Northeast Alabama, Community Foundation of Greater Birmingham, Community Foundation of Greater Huntsville, Community Foundation of Greater Decatur, Limestone Area Community Foundation, Central Alabama Community Foundation, Autauga Area Community Foundation, Elmore County Community Foundation, Southeast Alabama Community Foundation, Community Foundation of East Alabama, and Walker Area Community Foundation exempt from state, county, and municipal sale and use taxes

Summary

HB625 would exempt a list of community foundations in Alabama from state, county, and municipal sales and use taxes while requiring annual reporting, from 2022 through 2026.

What This Bill Does

The bill creates a sales tax exemption for the named community foundations. It requires each foundation to file an annual informational report with the Department of Revenue, with data that the department can share with the Legislative Services Agency. The exemption is set to start for the 2022 tax year and continue through the 2026 tax year, unless the Legislature extends it; the act itself becomes effective according to typical legislative timing.

Who It Affects

• The named community foundations listed in the bill would be exempt from paying state, county, and municipal sales and use taxes.
• State and local governments (revenue authorities) would potentially see reduced sales tax revenue, and the Department of Revenue and Legislative Services Agency would handle the required annual reporting and data sharing.

Key Provisions

• Exempts the following foundations from paying any state, county, and municipal sales and use taxes: Community Foundation of South Alabama; Community Foundation of West Alabama; Black Belt Community Foundation; Community Foundation of Northeast Alabama; Community Foundation of Greater Birmingham; Community Foundation of Greater Huntsville; Community Foundation of Greater Decatur; Limestone Area Community Foundation; Central Alabama Community Foundation; Autauga Area Community Foundation; Elmore County Community Foundation; Southeast Alabama Community Foundation; Community Foundation of East Alabama; Walker Area Community Foundation.
• Each exempt foundation must file an annual informational report with the Department of Revenue, with information consistent with Section 40-9-61, and the Department may provide this information to the Legislative Services Agency; the information is not confidential.
• The sales and use tax exemption will be effective January 1, 2022 for the 2022 tax year and continue through the 2026 tax year, unless extended by the Legislature.
• The act becomes effective on the first day of the third month after its passage/approval, or as otherwise provided by law.

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