SB40 Alabama 2021 Session

Summary

Primary Sponsor

Sam GivhanSenator

Republican

Co-Sponsors

Gerald H. AllenTom ButlerSteve LivingstonTim MelsonArthur OrrClay Scofield

Session

Regular Session 2021

Title

Taxation, exempt state, county, and municipal sales and use tax from certain entities

Summary

SB40 exempts three Alabama educational foundations from paying state, county, and municipal sales and use taxes.

What This Bill Does

If enacted, the Alabama School of Fine Arts Foundation, Incorporated; the Alabama High School of Mathematics and Science Foundation; and the Alabama School of Cyber Technology and Engineering Foundation would not owe state, county, or local sales and use taxes on purchases starting January 1, 2021. The exemption changes how taxes apply to their transactions and overrides other tax rules. The act becomes effective when the governor signs it or it otherwise becomes law.

Who It Affects

• The three named foundations (Alabama School of Fine Arts Foundation, Incorporated; Alabama High School of Mathematics and Science Foundation; Alabama School of Cyber Technology and Engineering Foundation) would no longer have to pay state, county, or municipal sales and use taxes on their purchases.
• State and local tax authorities would not collect those taxes from these foundations, reducing tax revenue from those transactions.

Key Provisions

• Exempts the Alabama School of Fine Arts Foundation, Incorporated; the Alabama High School of Mathematics and Science Foundation; and the Alabama School of Cyber Technology and Engineering Foundation from paying any state, county, and municipal sales and use taxes, beginning January 1, 2021.
• Notwithstanding any other provision of law, the exemption applies to these foundations.
• The act becomes effective immediately after its passage and approval by the Governor, or upon becoming law.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Sales and Use Tax