HB131 Alabama 2024 Session

Summary

Primary Sponsor

Mack N. ButlerRepresentative

Republican

Session

Regular Session 2024

Title

Sales and use tax, durable medical equipment and medical supplies revised.

Summary

HB131 requires certain providers to obtain a Department of Revenue Certificate of Exemption to purchase durable medical equipment and supplies tax-exempt for patients covered by Medicare, Medicaid, or health benefit plans.

What This Bill Does

It defines durable medical equipment and lists items that can be tax-exempt when used for medical purposes and covered by Medicare/Medicaid or health plans. It requires providers that stock or rent these items to obtain a certificate of exemption and present it at the time of purchase; certificates are valid for one year and must be renewed. Beginning September 1, 2024, exemptions rely on the certificate, and the Department of Revenue can enforce compliance, including penalties for misuse and rules to administer the program.

Who It Affects

• Health care providers that stock or rent durable medical equipment and supplies for patients covered by Medicare, Medicaid, or a health benefit plan; they must obtain and maintain a Certificate of Exemption and show it to sellers at purchase.
• Sellers and suppliers of durable medical equipment and medical supplies; they must verify and accept exemption certificates and may face penalties if exemptions are misused or not properly reported.

Key Provisions

• Durable medical equipment is defined as equipment suitable for home use that can be used repeatedly for medical reasons.
• Oxygen or DME dispensed under physician orders to Medicare recipients, and DME rented to such recipients under orders, are exempt from state and local sales/use taxes.
• Starting September 1, 2024, health care providers claiming exemption must obtain and maintain a Certificate of Exemption from the Department of Revenue before purchase and provide the certificate to the seller at the time of purchase; certificates are valid for one year and must be renewed annually.
• The Department of Revenue may assess taxes for improper use of exemptions, can impose civil penalties (minimum $2,000 or two times the tax due, whichever is greater), and may bar continued use of exemptions for up to two years; the department may adopt rules to administer the exemption program and related reporting.

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 & Revenue