Taxation; Goodwill Industries of the Southern Rivers, exempt from sales and use tax

Plain English Breakdown

The official source material does not provide details on how much money will be lost from the state or local taxes, nor does it specify if other similar organizations will receive similar exemptions.

Goodwill Industries of the Southern Rivers Exempt from Sales and Use Taxes

This bill makes Goodwill Industries of the Southern Rivers exempt from paying state sales and use taxes, and allows local governments to also give them tax exemptions.

What This Bill Does

• Makes Goodwill Industries of the Southern Rivers exempt from paying state sales and use taxes.
• Allows counties and municipalities to exempt Goodwill Industries from local sales and use taxes.

Who It Names or Affects

• Goodwill Industries of the Southern Rivers
• Counties and municipalities in Alabama

Terms To Know

Sales Tax

A tax charged on the sale or lease of goods and services.

Use Tax

A tax that applies when someone buys something in another state without paying sales tax there, but then uses it in their home state.

Limits and Unknowns

• The bill does not specify how much money will be lost from the state or local taxes.
• It is unclear if other similar organizations will receive similar exemptions.

Official Summary Text

Taxation; Goodwill Industries of the Southern Rivers, exempt from sales and use tax

Current Bill Text

HB423 INTRODUCED
Page 0
HB423
PS9CAGR-1
By Representative Gray
RFD: Ways and Means Education
First Read: 10-Feb-26
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PS9CAGR-1 01/29/2026 RA (F)RA 2026-583
Page 1
First Read: 10-Feb-26
SYNOPSIS:
This bill would exempt the Goodwill Industries
of the Southern Rivers Incorporated 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 Goodwill
Industries of the Southern Rivers Incorporated 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 Goodwill Industries of the Southern
Rivers Incorporated is exempt from paying any 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.
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HB423 INTRODUCED
Page 2
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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