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HB637 INTRODUCED
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HB637
U9YAJDX-1
By Representatives Holk-Jones, Fidler, Givens, Drummond,
Collins, Baker, Shaver
RFD: Ways and Means Education
First Read: 17-Mar-26
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U9YAJDX-1 03/16/2026 MRF (F)MRF 2026-1371
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First Read: 17-Mar-26
SYNOPSIS:
Under existing law, certain organizations and
vendors are exempt from payment of state, county, and
municipal sales and use taxes.
Under existing law, the Alabama Gulf Coast Zoo
was exempt from the payment of state, county, and
municipal sales and use taxes for capital expenditures;
however, this exemption expired on September 30, 2022.
This bill would reinstate the state portion of
the exemption for all state sales and use taxes through
September 30, 2028, and allow counties and
municipalities to adopt local exemptions for the
entity.
A BILL
TO BE ENTITLED
AN ACT
Relating to sales and use taxes; to amend Section
40-23-5, Code of Alabama 1975, to reinstate the exemption for
the Alabama Gulf Coast Zoo from the payment of state sales and
use taxes for capital expenditures, and to allow counties and
municipalities to adopt local exemptions for the entity.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
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BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-23-5, Code of Alabama 1975, is
amended to read as follows:
"§40-23-5
(a) The Diabetes Trust Fund, Inc., and any of its
branches or agencies, heretofore or hereafter organized and
existing in good faith in the State of Alabama for purposes
other than for pecuniary gain and not for individual profit,
are exempted from paying any state, county, or municipal sales
or use taxes.
(b) The Chilton County Rescue Squad is exempted from
paying any sales or use taxes.
(c) The state headquarters only of the American
Legion ;, the American Veterans of World War II, Korea, and
Vietnam, also known as AMVETS ;, the Disabled American
Veterans ;, the Veterans of Foreign Wars, also known as VFW ,;
Alabama Goodwill Industries ;, and the Alabama Sight
Conservation Association are exempted from paying any state,
county, or municipal sales or use taxes.
(d) The Grand Chapter of all Orders of the Eastern Star
and the South Alabama State Fair Association Southeastern
Livestock Exposition of the State of Alabama and any of its
agencies, heretofore or hereafter organized and existing in
good faith in the State of Alabama for purposes other than for
pecuniary gain and not for individual profit, are exempted
from paying any state, county, or municipal sales and use
taxes.
(e) The Alabama Goodwill Industries, Inc., of
Birmingham is exempted from paying any state, municipal, or
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Birmingham is exempted from paying any state, municipal, or
county sales and use taxes.
(f) The Alabama Federation of Women's Clubs is exempted
from paying any state, county, or municipal sales or use
taxes.
(g) The National Conference of State Legislatures and
the Council of State Governments are exempted from paying any
state, county, or municipal sales or use taxes.
(h) All blind vendors associated with the Business
Enterprise Program of the Department of Rehabilitation
Services are exempted from paying any state, county, or
municipal sales or use taxes.
(i) All vendors who are blind as defined by Section
1-1-3, and who are certified by the Department of
Rehabilitation Services, are exempted from paying any state,
county, or municipal sales or use taxes.
(j) The Elks Club, B.P.O.E., No. 1887, a corporation,
is exempted from paying any state, county, or municipal sales
or use taxes . Provided, however, that , as long as the
exemption provided by this subsection shall not extend to any
bar or dining room operation conducted by the Elks Club.
(k) The King's Ranch, Inc., is exempted from paying any
state, county, or municipal sales or use taxes.
(l) The Eye Foundation, Inc., and any of its branches
or agencies, heretofore , or hereafter organized and existing
in good faith in the State of Alabama for purposes other than
for pecuniary gain and not for individual profit, are exempted
from paying any state, county, or municipal sales or use
taxes.
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taxes.
(m) Any county public hospital association or any
Alabama nonprofit membership corporation if one or more of its
members is a county public hospital association, and any of
its, or their, branches, agencies, lessees, or successors
organized pursuant to Section 10-3A-1 et seq., and which
operates or maintains hospitals for purposes other than for
pecuniary gain and not for individual profit, is exempted from
paying any state, county, or municipal sales and use tax of
any nature whatsoever. Any of the taxes whichthat were or may
be assessed or collected subsequent to December 31, 1993,
against any Alabama nonprofit membership corporation or any
lessee of any county public hospital association organized as
herein stated, pursuant to a lease in writing, will be
remitted to the entity which paid them ; and. noNo action or
proceeding against the association or nonprofit corporation
may be instituted after the date by the State of Alabama or
any county or municipality thereof or any agent or person
acting on behalf thereof for the collection or enforcement of
any sales or use tax of any nature whatsoever.
(n) There is exempted from all state, county, and
municipal sales taxes the sale of food pursuant to the food
distribution program conducted by Christian Service Mission,
Inc., an Alabama not-for-profit nonprofit corporation, in
cooperation with World Share, Inc., to enable needy persons to
purchase food at substantially discounted prices and in
consideration of the performance of charitable or community
work by such persons.
(o) Rescue service organizations operating within the
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(o) Rescue service organizations operating within the
State of Alabama which are exempt from federal income taxes
under the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3)
and which are members of the Alabama Rescue Services
Association, Incorporated, are exempted from any state,
county, and municipal sales and use taxes.
(p) Alabama Goodwill Industries, Inc., Goodwill
Industries of Mobile Area, Inc., and Goodwill Industries of
Central Alabama, Inc., are exempted from paying any state,
county, and municipal sales or use taxes.
(q) The gross receipts from the sale of admissions to a
sporting event conducted by the Senior Professional Golfers
Association are exempted from any state, county, and municipal
sales taxes.
(r) Volunteer, non-profit nonprofit rescue units
operating within the state which do not meet the criteria in
subsection (o) but are licensed by the State Board of Health
are exempt from any state, county, and municipal sales and use
taxes.
(s)(1) The Birmingham Zoo, Inc., is exempt from paying
any state, county, and municipal sales and use taxes
associated with any and all capital expenditures but shall
continue to collect and remit all other taxes to the
appropriate taxing authorities.
(2) The exemption provided pursuant to subdivision (1)
shall be available until September 30, 2027.
(3) The Birmingham Zoo, Inc., shall report annually to
the Department of Revenue on the sales for which the exemption
is granted. The Department of Revenue shall prescribe the
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is granted. The Department of Revenue shall prescribe the
format of such annual report.
(t)(1) The Zoo Foundation, Inc., operating as the
Alabama Gulf Coast Zoo, or any successor entity, is exempt
from paying any state , county, and municipal sales and use
taxes associated with any and all capital expenditures;
provided, however, that any exemption of county sales and use
taxes must first be authorized by resolution of the county
commission . The Zoo Foundation, Inc., shall continue to
collect and remit all other taxes to the appropriate taxing
authorities.
(2) Any county or municipality may exempt the entity
from the payment of county or municipal sales and use taxes in
accordance with Section 40-23-4.01, provided that the
exemption shall follow the same terms, conditions, and
definitions as otherwise provided in this act, including the
sunset date provided in subdivision (3).
(3) The exemption provided pursuant to subdivision (1)
shall be available until September 30, 20222028.
(3)(4) The Zoo Foundation, Inc., shall report annually
to the Department of Revenue on the sales for which the
exemption is granted. The Department of Revenue shall
prescribe the format of the annual report.
(u) The Josh Willingham Foundation is exempted from
paying any state, county, and municipal sales and use taxes.
(v) The Alabama Wildlife Center is exempt from paying
any state, county, and municipal sales and use taxes until
September 30, 2024."
Section 2. This act shall become effective on September
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Section 2. This act shall become effective on September
1, 2026.169