HB3 Alabama 2026 Session

Updated Feb 17, 2026

Summary

Primary Sponsor: Chip BrownRepresentative
Republican
Session: 2026 Regular Session
Title: Taxation; to exempt certain retail sales of fish or other seafood from sales and use taxes
Summary: HB3 would exempt the gross proceeds from certain retail fish and seafood sales from Alabama's state sales tax, with local governments allowed to exempt these sales from local taxes, effective September 1, 2026.
What This Bill Does
It provides a state sales and use tax exemption for the gross proceeds from retail sale of fish or seafood that is in its original or unmanufactured state by a producer. A 'producer' is defined as a licensed commercial fisherman or the owner of a commercially licensed vessel that is also licensed to sell seafood to the public. Counties and municipalities may similarly exempt these sales from local sales and use taxes. The act becomes effective on September 1, 2026.

Who It Affects
Producers (licensed commercial fishermen or vessel owners): Their retail sales of original/unmanufactured fish/seafood would be exempt from state tax.
Consumers/retail buyers of fish and seafood: They would pay no state sales tax on eligible purchases, with local tax impact depending on whether their county or municipality chooses to exempt locally.
Local governments (counties and municipalities): They have the option to exempt these sales from local sales and use taxes, potentially affecting local revenue.

Key Provisions
Exempts the gross proceeds from the retail sale of fish or seafood in its original or unmanufactured state from the state sales and use tax (as described in the applicable code sections).
Defines 'producer' as a licensed commercial fisherman or the owner of a commercially licensed vessel also licensed to sell seafood to the public (pursuant to Section 9-12-125).
Allows counties and municipalities to exempt these sales from local sales and use taxes in accordance with Section 40-23-4.01.
Effective date: September 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation & Revenue