HB321 Alabama 2022 Session

Summary

Primary Sponsor

Chris BlackshearRepresentative

Republican

Session

Regular Session 2022

Title

Relating to sales taxes, to remove the exclusion for travel trailers or housecars that will be registered outside Alabama from the exemption of sales tax, and to provide that sales of travel trailers and housecars are not subject to sales tax, Sec. 40-23-2 am'd.

Summary

HB321 would extend Alabama's 72-hour 'drive-out' sales tax exemption to travel trailers and housecars, making their sale tax-free if the vehicle is exported or first used outside Alabama within 72 hours, and would require nonresident buyers to show documentation that the vehicle will be titled or registered outside the state.

What This Bill Does

If passed, travel trailers and housecars meeting the drive-out requirements would be exempt from Alabama sales tax when exported within 72 hours to be titled/registered outside Alabama. Nonresident purchasers must provide documentation to the seller proving the vehicle will be registered or titled outside Alabama. The rule remains in place for other vehicles (autos, motorcycles, etc.) under the drive-out provisions; some vehicles like mobile homes, boats, and certain other categories still do not qualify for the exemption. The Alabama Department of Revenue would publish annually a list of states that do not allow drive-out provisions and would provide relief to taxpayers if that list is incorrect; sales would require approved forms to show exempt status.

Who It Affects

• Nonresident buyers of travel trailers and housecars: could avoid Alabama sales tax if they export the vehicle within 72 hours and provide required documentation.
• Alabama motor vehicle dealers and sellers: must verify documentation and apply the exemption when eligible; otherwise collect tax as usual.
• Alabama Department of Revenue: administers the exemption, publishes the list of states, and handles documentation/forms requirements and any miscollection relief.
• Residents of Alabama who buy travel trailers or housecars: generally unaffected; the exemption targets nonresidents.

Key Provisions

• Travel trailers and housecars are added to the 72-hour drive-out export exemption and would not be subject to Alabama sales tax when exported or first used outside Alabama within 72 hours.
• Nonresident purchasers must provide documentation to the seller proving the vehicle will be registered or titled outside Alabama to qualify for the exemption.
• Vehicles not eligible for the exemption (e.g., mobile homes, motorbikes, ATVs, boats) remain taxable unless the dealer can prove delivery outside Alabama.
• The Alabama Department of Revenue must publish annually a list of states that do not allow drive-out provisions, and taxpayers would be relieved from liability if that list is incorrect; documentation must be on Revenue-approved forms.

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

Subjects

Sales and Use Tax