House Bill 394 Alabama 2026 Session

Updated Mar 4, 2026

Low Interest

Summary

Primary Sponsor: Kelvin LawrenceRepresentative
Democrat
Session: 2026 Regular Session
Title: Taxation; Freedom Quilting Bee Legacy exempt from sales and use taxes
Summary: HB394 would exempt Freedom Quilting Bee Legacy from state sales and use taxes and let counties and municipalities choose to exempt it from local sales and use taxes, effective September 1, 2026.
What This Bill Does
If enacted, the bill would remove Freedom Quilting Bee Legacy’s obligation to pay state sales and use taxes. It would also authorize counties and municipalities to exempt the entity from local sales and use taxes under the existing framework in Section 40-23-4.01. The exemption would take effect on September 1, 2026.

Who It Affects
Freedom Quilting Bee Legacy — would be exempt from state sales and use taxes, and could be exempt from local taxes if a county or municipality chooses to grant the exemption.
Counties and municipalities — would have the option to grant local sales and use tax exemptions for Freedom Quilting Bee Legacy under Section 40-23-4.01.

Key Provisions
Exempts Freedom Quilting Bee Legacy from paying state sales and use taxes.
Allows counties and municipalities to exempt Freedom Quilting Bee Legacy from local sales and use taxes under Section 40-23-4.01; effective 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