AlabamaAlabama law exempts ten community foundations from state sales taxes
Starting September 1, 2026, ten named Alabama community foundations are exempt from state sales and use taxes through August 2031 if they file annual reports.
What it does
Ten named Alabama community foundations are exempt from state sales and use taxes from September 1, 2026, through August 31, 2031. Each must file annual reports.
Counties and municipalities may also exempt the ten foundations from local sales and use taxes, but each local government decides whether to do so.
Argument forThe state tax exemption could leave the ten foundations with more money for their work during the period it applies.
Argument againstAnnual reports could add work for the foundations, and the reports would not be covered by the usual tax information confidentiality rules.
More detail
The law exempts ten named community foundations from state sales and use taxes. The exemption covers the ten foundations named in the law. Each foundation must file an annual information report in the form set by the Department of Revenue. The reports must include information required under Section 40-9-61; the department must send them each year to the Legislative Services Agency's Fiscal Division, and they are not covered by the usual tax information confidentiality rules. The exemption runs from September 1, 2026, through August 31, 2031.
A county or municipality may exempt the ten named foundations from its sales and use taxes. The option applies to the ten foundations named in the state exemption. Each county or municipality decides whether to grant the exemption under Section 40-23-4.01.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 16EnactedBecame Law
- Apr 8Signature Requested
- Apr 8Delivered to GovernorTo Governor
- Apr 7Third Reading in Second House
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 1214. Result: pass.Upper
- Vote recorded Third Reading in Second House. Result: pass.Upper
- Apr 7Motion to Read a Third Time and Pass - Adopted Roll Call 1214Passed Senate
- Apr 7Ready to Enroll
- Apr 7Enrolled
- Mar 19Read for the Second Time and placed on the Calendar (Finance and Taxation Education)Minor
- Mar 18Reported Out of Committee Second House
- Mar 3Third Reading in House of Origin
- Vote recorded Third Reading in House of Origin. Result: pass.Lower
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 671. Result: pass.Lower
- Mar 3Motion to Read a Third Time and Pass - Adopted Roll Call 671Passed House
- Mar 3Read for the first time and referred to the Senate Committee on Finance and Taxation EducationMinor
- Mar 3Pending Committee Action in Second House (Finance and Taxation Education)
- Feb 12Read for the Second Time and placed on the Calendar (Ways and Means Education)Minor
- Feb 11Reported Out of Committee House of Origin
- Feb 5Read for the first time and referred to the House Committee on Ways and Means EducationMinor
- Feb 5Pending Committee Action in House of Origin (Ways and Means Education)Introduced
Taxes & Budget