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HB425 • 2026

Taxation, Sleep in Heavenly Peace Inc., exempt from sales and use tax

Taxation, Sleep in Heavenly Peace Inc., 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
Gidley
Last action
2026-04-07
Official status
Read Second Time in Second House
Effective date
Not listed

Plain English Breakdown

The bill states it becomes effective on September 1, 2026, but the tax exemption period does not begin until October 1, 2026.

Tax Exemption for Sleep in Heavenly Peace Inc.

This bill exempts Sleep in Heavenly Peace, Inc. from state sales and use taxes between October 1, 2026, and September 30, 2029, while allowing local governments to choose whether to grant a similar exemption.

What This Bill Does

  • Exempts Sleep in Heavenly Peace, Inc. from paying state sales and use taxes for the period starting October 1, 2026, and ending September 30, 2029.
  • Allows counties and municipalities to exempt this organization from local sales and use taxes if they approve it.

Who It Names or Affects

  • Sleep in Heavenly Peace, Inc.
  • State agencies that collect sales and use taxes
  • County governments with local sales or use taxes
  • Municipalities (cities) with local sales or use taxes

Limits and Unknowns

  • The bill does not specify any conditions the organization must meet to keep the exemption.
  • Local governments may choose whether or not to grant their own tax breaks; they are not required to do so.

Bill History

  1. 2026-04-07 Senate

    Read for the Second Time and placed on the Calendar

  2. 2026-04-07 Senate

    Reported Out of Committee Second House

  3. 2026-03-03 House

    Motion to Read a Third Time and Pass - Adopted Roll Call 682 (Yeas 105, Nays 0)

  4. 2026-03-03 House

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

  5. 2026-03-03 Senate

    Pending Committee Action in Second House

  6. 2026-03-03 Senate

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

  7. 2026-02-19 House

    Read for the Second Time and placed on the Calendar

  8. 2026-02-19 House

    Reported Out of Committee House of Origin

  9. 2026-02-12 House

    Pending Committee Action in House of Origin

  10. 2026-02-12 House

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

Official Summary Text

Taxation, Sleep in Heavenly Peace Inc., exempt from sales and use tax

Current Bill Text

Read the full stored bill text 
HB425 INTRODUCED
Page 0
HB425
CX5ZRQQ-1
By Representative Gidley
RFD: Ways and Means Education
First Read: 12-Feb-26
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CX5ZRQQ-1 02/11/2026 RA ()RA 2026-836
Page 1
First Read: 12-Feb-26
SYNOPSIS:
This bill would exempt Sleep in Heavenly Peace,
Inc. from the 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 Sleep in
Heavenly Peace, Inc. from the payment of state, county and
municipal sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) For the period commencing on October 1,
2026, and ending on September 30, 2029, Sleep in Heavenly
Peace, Inc. is exempt from paying state sales and use taxes.
(b) Sleep in Heavenly Peace, Inc. may be exempted from
paying county or municipal sales and use taxes upon approval
of the county or municipality pursuant to Section 40-23-4.01.
Section 2. This act shall become effective on September
1, 2026.
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