HB127 Alabama 2022 Session

Summary

Primary Sponsor

Andrew SorrellAuditor

Republican

Session

Regular Session 2022

Title

Virtual currency, exemption from ad valorem taxation provided, Sec. 40-9-1 am'd.

Summary

HB127 would exempt virtual currency from Alabama's ad valorem (property) taxes.

What This Bill Does

It adds virtual currency to the list of property exempt from ad valorem taxation in Section 40-9-1. As a result, owners of virtual currency would not owe ad valorem tax on their virtual currency holdings. The bill defines virtual currency to clarify what qualifies for the exemption. The exemption takes effect on the first day of the third month after the bill becomes law.

Who It Affects

• Individuals and institutions that hold virtual currency in Alabama would not be subject to ad valorem taxes on that currency.
• Local tax assessors and government finance offices would apply the exemption when valuing property for ad valorem taxes.

Key Provisions

• Adds 'Virtual Currency' to the exempt property list in Section 40-9-1, making it exempt from ad valorem taxation.
• Defines Virtual Currency as a digital representation of value, other than a representation of the United States dollar or a foreign currency, that functions as a unit of account, store of value, and/or medium of exchange.
• Effective date: the act becomes law on the first day of the third month after passage and governor 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