HB257 Alabama 2024 Session

Summary

Primary Sponsor

Joe LovvornRepresentative

Republican

Session

Regular Session 2024

Title

Alabama Adventure Awaits sales tax holiday created; to exempt certain items from sales tax during the first weekends in March and August

Summary

HB257 creates the Alabama Adventure Awaits sales tax holiday, exempting a broad list of outdoor and hunting items from state sales tax during a designated weekend, with CPI-based price adjustments, local opt-in options for municipalities/counties, and a sunset unless extended.

What This Bill Does

It establishes the Alabama Adventure Awaits sales tax holiday and exempts purchases of defined covered items from state sales tax during a specified weekend (starting 12:01 a.m. on the first Friday in May through the following Sunday). It defines covered item categories (including boating, camping, fishing, general outdoor supplies, gun safes and safety devices, hunting supplies, and related gear) and sets price caps for many items. It requires the Department of Revenue to adopt rules and allows counties and municipalities to opt in to exempt their own taxes during the same period under similar terms, with inflation-based adjustments to dollar amounts and a sunset provision set for December 31, 2027 (unless extended). It also amends local opt-in provisions for existing holidays and ties certain changes to inflation and future legislative action, with a condition that the act becomes effective only if House Bill 258 passes.

Who It Affects

• Consumers in Alabama who purchase covered items during the holiday would pay no state sales tax on those items, subject to item-specific price caps and eligibility.
• Counties and municipalities (local governments) and retailers, who may participate or implement exemptions under local opt-in provisions, adopt resolutions, and apply the exemption consistently with the state period.

Key Provisions

• Creates the Alabama Adventure Awaits Sales Tax Holiday and defines the period as purchases exempt from state sales tax from 12:01 a.m. on the first Friday in May to the following Sunday midnight.
• Defines 'covered items' in categories: boating/water activity supplies; camping supplies; sports/recreational equipment; fishing supplies; general outdoor supplies; gun safes; gun safety devices; and hunting supplies, each with specific price caps for individual items or sets.
• Implements inflation adjustments to dollar thresholds via CPI: initial adjustments in 2025 (and 2030 for certain sections), with subsequent five-year cycles to adjust the amounts.
• Allows counties and municipalities to opt in to exempt their own taxes during the same period, with the same terms as the state holiday, and restricts exemptions to designated periods only.
• Extends to amendments of existing local opt-in provisions for School Items and Severe Weather Preparedness holidays, adding alternate local opt-in weekends while preventing exemptions outside designated periods.
• Sets a sunset: the holiday ends December 31, 2027 unless extended by further act of the Legislature.
• Effective date contingent on the enactment of House Bill 258 (simplified sellers use tax).
• Requires the Department of Revenue to adopt rules and maintain a list of qualifying articles and items for the exemption.

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