- Alabama enacted a law on local sales and use tax exemptions.
- New exemptions apply automatically only to state-level taxes unless specified for local authorities.
- Local governments must pass an ordinance or resolution to opt out, effective September 1, with notice by July 1.
- Existing local exemptions remain if they do not need local action; otherwise, they expire September 1, 2025, unless requirements are met.
- ADOR will maintain a public list of valid exemptions and can create rules for the new law.
- Alabama taxpayers must be aware of local changes and ensure proper documentation.
- Businesses should monitor changes in July affecting September tax collection.
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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