House Bill 394 Alabama 2026 Session

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