Taxation; Goodwill Industries of the Southern Rivers, 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

Checked against official source text during the last sync.

Tax Exemption for Goodwill Industries of the Southern Rivers

This law exempts a specific organization from state sales and use taxes and allows local governments to choose whether to exempt it as well.

What This Bill Does

Exempts Goodwill Industries of the Southern Rivers Incorporated from paying state sales tax.
Exempts Goodwill Industries of the Southern Rivers Incorporated from paying state use tax.
Allows counties and cities to choose whether to exempt this organization from local taxes.
Sets a start date for these changes on September 1, 2026.

Who It Names or Affects

Goodwill Industries of the Southern Rivers Incorporated
Alabama state tax agencies
Local county and city governments

Limits and Unknowns

The law does not require local governments to exempt this group; they may choose to do so.
The text only names one specific organization and does not apply to other Goodwill groups or charities.

Bill History

2026-03-03 House
Motion to Read a Third Time and Pass - Adopted Roll Call 680 (Yeas 101, Nays 0)
2026-03-03 House
Third Reading in House of Origin (Yeas 103, Nays 0)
2026-03-03 Senate
Pending Committee Action in Second House
2026-03-03 Senate
Read for the first time and referred to the Senate Committee on Finance and Taxation Education
2026-02-19 House
Read for the Second Time and placed on the Calendar
2026-02-19 House
Reported Out of Committee House of Origin
2026-02-10 House
Pending Committee Action in House of Origin
2026-02-10 House
Read for the first time and referred to the House Committee on Ways and Means Education

Official Summary Text

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

Current Bill Text

Read the full stored 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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