HB 257 — Alabama Adventure Awaits sales tax holiday created; to exempt certain items from sales tax during the first weekends in March and August

HB257 INTRODUCEDENGROSSED HB257 9IXRBMB-17JQRVVV-2 By Representative Lovvorn RFD:

28-Feb-24 Page 0 9IXRBMB-1HB257 02/05/2024Engrossed RA2 (F)RA4 2023-3623A 2BILL 4TO SYNOPSIS:BE ENTITLED AN ACT 9 To create the Alabama Adventure Awaits sales tax holiday;

This bill would create the Alabama Adventure Awaits sales tax holiday to occur annually the first weekend in March and the first weekend in August.

This bill would exempt certain items from state sales and use tax and allow municipalities and counties to opt-in to the sales tax holiday.

This bill would also amend the current local opt in provisions for the existing School Items and Severe Weather Preparedness sales tax holidays.

In addition this bill would provide for the adjustment of the dollar value of items covered in each of the three sales tax holidays by the Consumer Price Index.

A BILL TO BE ENTITLED AN ACT To create the Alabama Adventure Awaits sales tax holiday;

to amend sections 40-23-213 and 40-23-233, Code of Alabama 1975, relating to the local opt-in provisions for the existing Page 1 HB257 INTRODUCED School Items and Severe Weather Preparedness sales tax holidays;

One of the greatest joys of Page 1 HB257 Engrossed living in Alabama is our abundance of outdoor resources.

recreational pool tubes, pool floats, inflatable chairs, and pool toys with Page 2 HB257 INTRODUCED a sales price of thirty-five dollars ($35) or less;

powered watercraft with a sales price of three hundred thousand dollars ($300,000) or less;

sleeping bags, portable hammocks, camping stoves, and collapsible Page 2 HB257 Engrossed camping chairs with a sales price of fifty dollars ($50) or less;

The Page 3 HB257 INTRODUCED term does not include supplies used for commercial fishing purposes.

outdoor gas or charcoal grills with a sales price of two 95 hundred and fifty dollars ($250) or less;

(6) "Gun safes" which shall mean a locking container or other enclosure equipped with a padlock, key lock, combination lock, or other locking device that is designed and intended Page 3 HB257 Engrossed for the secure storage of one or more firearms.

(8) "Hunting supplies" which shall include the purchases of any tangible personal property for the use of hunting that is designed or intended by the manufacturer for 95 use in the hunt for wildlife with consideration to the representation in packaging, display, promotion, or Page 4 HB257 INTRODUCED advertising as appropriate use for hunting, including, but not limited to, firearms;

(2) The Alabama Department of Revenue shall repeat the Page 4 HB257 Engrossed adjustment provided in subdivision (1) every five calendar years thereafter.

Purchases of covered items, as defined in Section 3, are exempt from the state sales and use tax duringfrom the12:01 periods:a.m.

(i)on fromthe 12:01first a.m.Friday in May of each year and ending at twelve midnight the following Sunday.

onSection the5. first Friday in March of each year and ending at twelve midnight the following Sunday.

(ii) from 12:01 a.m.

on the first Friday in August of each year and ending at twelve midnight the following Sunday.

Page 5 HB257 INTRODUCED Section 5.

Any county or municipality may provide for the exemption of the purchases of covered items from county or municipal sales and uses taxes, respectively, during the periodsperiod provided in Section 4 by adoption of a resolution or ordinance at least 90 days prior to the sales tax holiday period and under the same terms, conditions, and definitions as provided for the state sales tax holiday.

Sections 40-23-213 and 40-23-233, Code of Page 5 HB257 Engrossed Alabama 1975, are amended to read as follows:

on the third Friday in July of each year and ending at 12 midnight the following Sunday under the same terms, conditions, and definitions as provided for Page 6 HB257 INTRODUCED the state sales tax holiday.

Section 40-23-210.1 is added to the Code of Page 6 HB257 Engrossed Alabama 1975, to read as follows:

(b) The Alabama Department of Revenue shall repeat the Page 7 HB257 INTRODUCED adjustment provided in subsection (a) every five calendar years thereafter.

This act shall become effective on October 1, 2024, only upon the enactment of House Bill __258 of the 2024 Regular Session, regarding the simplified sellers use tax.

Page 87 HB257 Engrossed House of Representatives Read for the first time and referred ................28-Feb-24 to the House of Representatives committee on Ways and Means General Fund Read for the second time and placed ................11-Apr-24 on the calendar:

amendment Read for the third time and passed ................16-Apr-24 as amended Yeas 102 Nays 0 Abstains 0 John Treadwell Clerk Page 8