Senate Bill 36 Alabama 2026 Session

Summary

Primary Sponsor

Greg AlbrittonSenator

Republican

Session

2026 Regular Session

Title

Local sales and use taxes, municipal sales and use taxes collected from nonresident Alabama taxpayers refunded

Summary

SB36 would require Alabama municipalities to refund municipal sales and use taxes paid by Alabama residents to other jurisdictions, upon proof of payment and residency.

What This Bill Does

SB36 would change current practice so that taxes collected by a municipality from an Alabama resident for purchases in a different jurisdiction are refunded to the resident with proper proof of payment and residency. The refund process is to be established by each municipality, and a resident may file only one refund petition per year, with documentation showing the taxes paid and residency. If a refund is issued, the municipality must pay interest starting 90 days after receipt of a properly documented petition, with interest accruing from day 91, and the act becomes effective on October 1, 2026.

Who It Affects

• Alabama residents who purchase tangible property in another jurisdiction and pay municipal sales and use taxes; they could receive a refund if they provide proof of payment and residency.
• Alabama municipalities and their tax offices; they would administer the refund process and issue refunds with interest.

Key Provisions

• Refunds of municipal sales and use taxes paid by Alabama residents to municipalities outside their residence upon proof of payment and residency.
• The refund process is to be established by the municipality, and refunds require documentation of taxes paid and residency.
• Taxpayers may file a refund petition only once per year.
• Municipalities must pay interest on refunds beginning 90 days after receipt of the properly documented petition, with interest accruing from day 91.
• Effective date: October 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