KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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HB3 • 2026

Taxation; to exempt certain retail sales of fish or other seafood from sales and use taxes

Taxation; to exempt certain retail sales of fish or other seafood from sales and use taxes

Education Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Brown (C)
Last action
2026-04-07
Official status
Read Second Time in Second House
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details about which types of fish or seafood are included in the exemption, leaving this as an open point.

Tax Exemption for Fish and Seafood Sales

This bill removes state sales and use taxes on the sale of fish or seafood in its original, unmanufactured form by licensed producers. It also allows counties and municipalities to exempt these sales from local taxes.

What This Bill Does

  • Exempts certain retail sales of fish and other seafood that are sold in their original, unmanufactured state from state sales and use taxes.
  • Defines a 'producer' as someone who is licensed to sell fish or seafood commercially.
  • Allows counties and municipalities to exempt these sales from local sales and use taxes if they choose to do so.

Who It Names or Affects

  • Licensed commercial fishermen
  • Owners of commercially licensed vessels that are also licensed to sell seafood
  • Counties and municipalities

Terms To Know

Producer
A person who is licensed to sell fish or seafood commercially.

Limits and Unknowns

  • The bill does not specify which types of fish or seafood are included.
  • It only applies to sales in their original, unmanufactured state.
  • Counties and municipalities have the option but not the requirement to exempt these sales from local taxes.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

RBQ71YY-1

R 155

Adopted

Plain English: RBQ71YY-1 01/21/2026 RA (H) HSE 2025-1877 House Ways and Means Education Reported Substitute for HB3 Page 1 A BILL TO BE ENTITLED AN ACT Relating to taxation; to provide an exemption from the state sales and use tax for certain retail sales of fish or other seafood; and to provide for counties and municipalities to exempt these sales from local sales and use taxes.

  • RBQ71YY-1 01/21/2026 RA (H) HSE 2025-1877 House Ways and Means Education Reported Substitute for HB3 Page 1 A BILL TO BE ENTITLED AN ACT Relating to taxation; to provide an exemption from the state sales and use tax for certain retail sales of fish or other seafood; and to provide for counties and municipalities to exempt these sales from local sales and use taxes.
  • BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1.
  • (a) (1) The gross proceeds from the retail sale of fish or other seafood which is in its original or unmanufactured state by a producer are exempt from the state sales and use tax as provided for in Section 40-23-2 and 40-23-61 , Code of Alabama 1975.
  • (2) For the purposes of this section, "producer" shall mean a licensed commercial fisherman or an owner of a commercially licensed vessel that is also licensed pursuant to Section 9-12-125, Code of Alabama 1975 to sell seafood to the public .
  • This amendment summary is using official source text because generated interpretation was skipped for this run.
JPM2PFY-1

Finance and Taxation Education

Finance and Taxation Education 1st Amendment

Plain English: JPM2PFY-1 : 4/6/2026 : MRF 1ST FINANCE AND TAXATION EDUCATION AMENDMENT TO HB3 OFFERED BY SENATOR ORR Page 1 Replace line 14 on page 1 with the following: Section 1.

  • JPM2PFY-1 : 4/6/2026 : MRF 1ST FINANCE AND TAXATION EDUCATION AMENDMENT TO HB3 OFFERED BY SENATOR ORR Page 1 Replace line 14 on page 1 with the following: Section 1.
  • (a) (1) Beginning on September 1, 2026, and ending on August 31, 2029, the gross proceeds from the retail 1 2 3 4 5 6 7 8
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Bill History

  1. 2026-04-07 Senate

    Read for the Second Time and placed on the Calendar

  2. 2026-04-07 Senate

    Reported Out of Committee Second House

  3. 2026-04-07 Senate

    Finance and Taxation Education 1st Amendment

  4. 2026-01-27 Senate

    Pending Committee Action in Second House

  5. 2026-01-27 Senate

    Read for the first time and referred to the Senate Committee on Finance and Taxation Education

  6. 2026-01-22 House

    Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 156 (Yeas 103, Nays 0)

  7. 2026-01-22 House

    Motion to Adopt - Adopted Roll Call 155 (Yeas 103, Nays 0)

  8. 2026-01-22 House

    Third Reading in House of Origin (Yeas 103, Nays 0)

  9. 2026-01-22 House

    Engrossed

  10. 2026-01-22 House

    Ways and Means Education Engrossed Substitute Offered

  11. 2026-01-21 House

    Read for the Second Time and placed on the Calendar

  12. 2026-01-21 House

    Reported Out of Committee House of Origin

  13. 2026-01-13 House

    Pending Committee Action in House of Origin

  14. 2026-01-13 House

    Read for the first time and referred to the House Committee on Ways and Means Education

Official Summary Text

Taxation; to exempt certain retail sales of fish or other seafood from sales and use taxes

Current Bill Text

Read the full stored bill text 
HB3 ENGROSSED
Page 0
HB3
RBQ71YY-2
By Representative Brown
RFD: Ways and Means Education
First Read: 13-Jan-26
PFD: 25-Jun-25
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2
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6
HB3 Engrossed
Page 1
PFD: 25-Jun-25
A BILL
TO BE ENTITLED
AN ACT
Relating to taxation; to provide an exemption from the
state sales and use tax for certain retail sales of fish or
other seafood; and to provide for counties and municipalities
to exempt these sales from local sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) (1) The gross proceeds from the retail
sale of fish or other seafood which is in its original or
unmanufactured state by a producer are exempt from the state
sales and use tax as provided for in Section 40-23-2 and
40-23-61, Code of Alabama 1975.
(2) For the purposes of this section, "producer" shall
mean a licensed commercial fisherman or an owner of a
commercially licensed vessel that is also licensed pursuant to
Section 9-12-125, Code of Alabama 1975 to sell seafood to the
public.
(b) Any county or municipality may exempt the gross
proceeds from the retail sale of fish or seafood which is in
its original or unmanufactured state by a producer from county
or municipal sales and use taxes in accordance with Section
40-23-4.01, Code of Alabama 1975.
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HB3 Engrossed
Page 2
40-23-4.01, Code of Alabama 1975.
Section 2. This act shall become effective on September
1, 2026.
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HB3 Engrossed
Page 3
1, 2026.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Ways and Means
Education
................13-Jan-26
Read for the second time and placed
on the calendar:
1 amendment
................21-Jan-26
Read for the third time and passed
as amended
Yeas 103
Nays 0
Abstains 1
................22-Jan-26
John Treadwell
Clerk
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