HB382 Alabama 2022 Session

Summary

Primary Sponsor

Chris BlackshearRepresentative

Republican

Session

Regular Session 2022

Title

Sales taxes, motor vehicles, drive out exclusion if requested in another state, to include travel trailers or housecars, proof or out-of-state residency, Sec. 40-23-2 am'd.

Summary

HB382 changes Alabama's sales tax rules for vehicles sold to be used in another state, adding an export provision with residency proof requirements for travel trailers and housecars, and detailing how the tax revenue is distributed.

What This Bill Does

It creates an export provision: sales of certain vehicles that will be titled or registered outside Alabama and exported within 72 hours are subject to Alabama sales tax at the state rate, with no county or municipal tax. For travel trailers, campers, and housecars, the buyer must prove non-residency to qualify for the export exemption, while proof is not required for other vehicle types. The Alabama tax cannot exceed what the destination state would charge, and the Department of Revenue will publish annually a list of states that do not allow drive-out provisions; miscollection relief is provided if the list is incorrect. Revenue from these exports is split with 58% going to the Education Trust Fund and 42% to the State General Fund; mobile homes, boats, and similar vehicles do not qualify for the exemption, and there is a $5 annual fee for stock-in-trade withdrawals used in business.

Who It Affects

• Vehicle buyers/export purchasers: Buyers of autos, motorcycles, trucks, truck trailers, travel trailers, campers, housecars, or semitrailers that will be registered outside Alabama and exported within 72 hours are affected because they may owe Alabama tax at the state rate and must meet residency proof requirements for travel trailers, campers, and housecars.
• Dealers/sellers and state revenue system: Dealers must collect the tax and document eligibility, the Department of Revenue must publish the annual list of states with drive-out restrictions, and a portion of the tax revenue goes to the Education Trust Fund while the rest goes to the State General Fund; miscollection relief applies if the state's list is wrong.

Key Provisions

• Export provision: sales of autos, motorcycles, trucks, truck trailers, travel trailers, campers, housecars, and semitrailers exported to another state and titled/registered outside Alabama within 72 hours are taxed at the state rate (no county/city tax) and not to exceed the destination state's tax.
• Residency proof: to qualify as a travel trailer, camper, or housecar export, the purchaser must provide documentation showing they are not a resident of Alabama; proof is not required for other vehicle types.
• Destination state tax cap: Alabama tax cannot exceed the tax that would be due in the state where the vehicle will be registered for first use; if the destination state allows Alabama residents to register without paying that state's tax, Alabama tax is capped accordingly.
• State list and relief: the Department of Revenue must publish each January 1 a list of states that do not allow drive-out provisions; if the list is incorrect, the taxpayer is relieved from liability for miscollection.
• Non-qualifying vehicles: mobile homes, motor bikes, all-terrain vehicles, and boats do not qualify for the export exemption and remain taxable unless delivered outside Alabama or to a common carrier for transportation outside Alabama.
• Revenue split: of the 2% tax on these sales, 58% goes to the Education Trust Fund and 42% to the State General Fund.
• Stock-in-trade rule: if a vehicle is withdrawn from stock in trade for business use, there is a $5 annual fee instead of the tax for that vehicle.
• Effective date: the act becomes effective on the first day of the third month after it passes and is approved by the Governor.

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