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HB422 • 2026

Taxation; Greater Peace Community Corporation, exempt from sales and use tax

Taxation; Greater Peace Community Corporation, exempt from sales and use tax

Taxes
Passed Legislature

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

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

Plain English Breakdown

The official text mentions allowing counties and refers to Section 40-23-4.01 for local exemptions, but does not explicitly state that individual municipalities have independent authority separate from county action.

Tax Exemption for Greater Peace Community Development Corporation

This law exempts the Greater Peace Community Development Corporation from state sales and use taxes and allows counties or municipalities to choose whether to exempt it from local sales and use taxes.

What This Bill Does

  • Exempts the Greater Peace Community Development Corporation from paying any state sales and use taxes.
  • Allows counties to exempt this entity from county sales and use taxes.

Who It Names or Affects

  • Greater Peace Community Development Corporation
  • Alabama state government agencies that collect sales tax
  • Counties in Alabama

Limits and Unknowns

  • Local exemptions depend on whether a county or municipality chooses to grant them.
  • The law becomes effective on September 1, 2026.

Bill History

  1. 2026-03-03 House

    Motion to Read a Third Time and Pass - Adopted Roll Call 678 (Yeas 103, Nays 0)

  2. 2026-03-03 House

    Third Reading in House of Origin (Yeas 102, 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. 2026-02-19 House

    Read for the Second Time and placed on the Calendar

  6. 2026-02-19 House

    Reported Out of Committee House of Origin

  7. 2026-02-10 House

    Pending Committee Action in House of Origin

  8. 2026-02-10 House

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

Official Summary Text

Taxation; Greater Peace Community Corporation, exempt from sales and use tax

Current Bill Text

Read the full stored bill text 
HB422 INTRODUCED
Page 0
HB422
I37E5ZW-1
By Representative Gray
RFD: Ways and Means Education
First Read: 10-Feb-26
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I37E5ZW-1 01/29/2026 RA (F)RA 2026-581
Page 1
First Read: 10-Feb-26
SYNOPSIS:
This bill would exempt the Greater Peace
Community Development Corporation from payment of state
sales and use taxes.
This bill would also allow municipalities and
counties 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 the Greater
Peace Community Development Corporation 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) The Greater Peace Community Development
Corporation is exempt from paying any state sales and use
taxes.
(b) Any county or municipality may exempt this entity
from 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
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HB422 INTRODUCED
Page 2
Section 2. This act shall become effective on September
1, 2026.29