HB398 • 2026

Taxation; to exempt High Socks for Hope from payment of state, county, and municipal 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: Lamb
Last action: 2026-03-11
Official status: Pending Committee Action in Second House
Effective date: Not listed

Plain English Breakdown

The bill allows but does not require counties and municipalities to grant exemptions; implementation depends on local action under Section 40-23-4.01.

Tax Exemption for High Socks for Hope

This law exempts the group High Socks for Hope from paying state sales and use taxes starting September 1, 2026.

What This Bill Does

Exempts High Socks for Hope from paying Alabama state sales and use taxes.
Allows counties to choose whether to exempt this entity from local sales and use taxes.
Allows municipalities to choose whether to exempt this entity from local sales and use taxes.

Who It Names or Affects

High Socks for Hope
Alabama state government agencies that collect sales tax
Local county governments in Alabama
Local city or town governments in Alabama

Limits and Unknowns

Counties and municipalities may choose whether to exempt the entity; they are not required to do so.
The bill does not specify what High Socks for Hope does or how it uses its funds.

Amendments

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

9JF1EPM-1

R 854

Adopted

Plain English: This amendment creates a tax break for the organization High Socks for Hope by removing state sales taxes and allowing local governments to remove their own sales taxes.

High Socks for Hope does not have to pay Alabama state sales or use taxes on its purchases.
Counties and cities are allowed, but not required, to also exempt High Socks for Hope from paying local sales or use taxes.

The text refers to a specific law (Section 40-23-4.01) that explains how local governments can grant this exemption, but the details of that process are not included in this amendment.
This change will only take effect on September 1, 2026.

Bill History

2026-03-11 House
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 855 (Yeas 103, Nays 0)
2026-03-11 House
Motion to Adopt - Adopted Roll Call 854 (Yeas 105, Nays 0)
2026-03-11 House
Third Reading in House of Origin (Yeas 105, Nays 0)
2026-03-11 Senate
Pending Committee Action in Second House
2026-03-11 Senate
Read for the first time and referred to the Senate Committee on Finance and Taxation Education
2026-03-11 House
Engrossed
2026-03-11 House
Ways and Means Education Engrossed Substitute Offered
2026-02-12 House
Read for the Second Time and placed on the Calendar
2026-02-11 House
Reported Out of Committee House of Origin
2026-02-05 House
Pending Committee Action in House of Origin
2026-02-05 House
Read for the first time and referred to the House Committee on Ways and Means Education

Official Summary Text

Taxation; to exempt High Socks for Hope from payment of state, county, and municipal sales and use taxes

Current Bill Text

Read the full stored bill text

HB398 ENGROSSED
Page 0
HB398
9JF1EPM-2
By Representative Lamb
RFD: Ways and Means Education
First Read: 05-Feb-26
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HB398 Engrossed
Page 1
First Read: 05-Feb-26
A BILL
TO BE ENTITLED
AN ACT
Relating to sales and use taxes; to exempt High Socks
for Hope, from the payment of state sales and use taxes; and
to allow municipalities and counties to exempt this entity
from local sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) High Socks for Hope is exempt from
paying state sales and use taxes.
(b) Any county or municipality may exempt this entity
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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HB398 Engrossed
Page 2
1, 2026.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Ways and Means
Education
................05-Feb-26
Read for the second time and placed
on the calendar:
1 amendment
................12-Feb-26
Read for the third time and passed
as amended
Yeas 103
Nays 0
Abstains 0
................11-Mar-26
John Treadwell
Clerk
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