HB205 Alabama 2025 Session

Summary

Primary Sponsor

Kerry UnderwoodRepresentative

Republican

Session

2025 Regular Session

Title

Sales and use taxes, technical edits to align exemptions

Summary

HB205 updates Alabama's use tax exemptions to match sales tax exemptions and adds recently enacted exemptions, including a new exemption for religious magazines and publications.

What This Bill Does

The bill makes a technical revision to the use tax exemption statute to keep use tax exemptions aligned with sales tax exemptions and to include recently enacted exemptions. It adds several specific exemptions, including property for which sales tax has been paid to a licensed seller, certain nonresident temporary storage/use of property, all exemptions listed in existing related sections, and religious magazines and publications (as defined). The act becomes effective July 1, 2025.

Who It Affects

• General consumers and businesses subject to use tax on tangible personal property; they may see a broader set of exemptions that mirror sales tax exemptions.
• Religious organizations and publishers that distribute religious magazines and publications free to students or pupils, who would have those materials exempt from use tax.

Key Provisions

• Amends Section 40-23-62 to make technical edits so use tax exemptions remain similar to sales tax exemptions and to include recently enacted exemptions.
• Explicitly exempts property on which the sales tax is paid by the consumer to a licensed seller (Article 1 licensee).
• Exempts tangible personal property not to be used in the performance of a contract, brought into Alabama by a nonresident for temporary storage, use, or consumption while in the state.
• Incorporates by reference all exemptions enumerated in Sections 40-23-4(a) and 40-23-4.1 Article 1, Division 1 of this chapter.
• Exempts the storage, use, or consumption in the state of religious magazines and publications, with a specific definition of such materials.

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