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HB394 • 2026

Taxation; Freedom Quilting Bee Legacy exempt from sales and use taxes

Taxation; Freedom Quilting Bee Legacy exempt from sales and use taxes

Taxes
Passed Legislature

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

Sponsor
Lawrence
Last action
2026-03-03
Official status
Pending Committee Action in Second House
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Freedom Quilting Bee Legacy Sales Tax Exemption

This bill removes state and local sales and use taxes for the Freedom Quilting Bee Legacy.

What This Bill Does

  • Exempts Freedom Quilting Bee Legacy from paying state sales and use taxes.
  • Allows counties to exempt Freedom Quilting Bee Legacy from county sales and use taxes.
  • Permits municipalities to exempt Freedom Quilting Bee Legacy from municipal sales and use taxes.

Who It Names or Affects

  • Freedom Quilting Bee Legacy
  • Counties and municipalities

Terms To Know

Sales tax
A tax charged on the sale of goods or services, usually a percentage of the purchase price.
Use tax
A tax similar to sales tax that applies when items are purchased out-of-state and used in Alabama without paying local sales tax.

Limits and Unknowns

  • The bill does not specify how the exemption will be enforced or monitored.
  • It is unclear what financial impact this exemption might have on state, county, and municipal budgets.

Bill History

  1. 2026-03-03 House

    Motion to Read a Third Time and Pass - Adopted Roll Call 673 (Yeas 104, Nays 0)

  2. 2026-03-03 House

    Third Reading in House of Origin (Yeas 104, Nays 0)

  3. 2026-03-03 Senate

    Pending Committee Action in Second House

  4. 2026-03-03 Senate

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

  5. 2026-02-12 House

    Read for the Second Time and placed on the Calendar

  6. 2026-02-11 House

    Reported Out of Committee House of Origin

  7. 2026-02-05 House

    Pending Committee Action in House of Origin

  8. 2026-02-05 House

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

Official Summary Text

Taxation; Freedom Quilting Bee Legacy exempt from sales and use taxes

Current Bill Text

Read the full stored bill text 
HB394 INTRODUCED
Page 0
HB394
84SNL2H-1
By Representatives Lawrence, Jackson
RFD: Ways and Means Education
First Read: 05-Feb-26
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84SNL2H-1 01/27/2026 MRF (F)MRF 2026-515
Page 1
First Read: 05-Feb-26
SYNOPSIS:
This bill would exempt Freedom Quilting Bee
Legacy from payment of state sales and use taxes.
This bill would also allow counties and
municipalities to exempt this entity from local sales
and use taxes.
A BILL
TO BE ENTITLED
AN ACT
Relating to sales and use taxes; to exempt Freedom
Quilting Bee Legacy from the payment of state sales and use
taxes and to allow counties and municipalities to exempt this
entity from local sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) Freedom Quilting Bee Legacy is exempt
from paying any state sales and use taxes.
(b) Any county or municipality may exempt Freedom
Quilting Bee Legacy from the payment of county or municipal
sales and use taxes in accordance with Section 40-23-4.01,
Code of Alabama 1975.
Section 2. This act shall become effective on September
1, 2026.
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