SB276 Alabama 2022 Session

Summary

Primary Sponsor

Tom Whatley

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

SB276 would extend Alabama's drive-out sales tax exemption to travel trailers, campers, and housecars, making them tax-free if they are exported for first use outside Alabama within 72 hours and the buyer proves they are not Alabama residents.

What This Bill Does

The bill removes the current exclusion for housecars and travel trailers from the 72-hour drive-out tax exemption, so these vehicles can be exempt from Alabama sales tax if they will be registered or titled outside Alabama within 72 hours. Purchasers would need to provide documentation showing they are not Alabama residents to qualify for the exemption. The exemption still depends on meeting the drive-out criteria and aligns with rules about other states' taxes; the Department of Revenue would also publish annually a list of states that do not allow drive-out provisions, and taxpayers would be relieved from miscollection liability if that list is incorrect. The change would take effect after the usual constitutional timing for such laws (first day of the third month after passage).

Who It Affects

• Alabama residents who plan to buy travel trailers, campers, or housecars and register or title them outside Alabama within 72 hours; they could avoid paying Alabama sales tax if they provide non-residency documentation and meet the drive-out requirements.
• Sellers/dealers in Alabama who sell travel trailers, campers, or housecars; they would need to collect and verify the required non-residency documentation and follow the revised exemption rules when these vehicles are exported for first use outside the state.

Key Provisions

• Extend the 72-hour drive-out sales tax exemption to travel trailers, campers, and housecars (they will be exempt if exported/removed for first use outside Alabama within 72 hours).
• Require the purchaser to provide documentation showing they are not a resident of Alabama for these vehicle types to qualify for the exemption.
• Maintain the rule that the exemption applies only to vehicles that will be registered or titled outside Alabama and that the sale must meet drive-out conditions.
• The Alabama Department of Revenue must publish annually a list of states that do not allow drive-out provisions; if the list is incorrect, the taxpayer is relieved from miscollection liability.
• Effective date: the first day of the third month after the bill passes and is approved.

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