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Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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SB37 • 2026

Local sales and use taxes, exemption for nonresident Alabama taxpayers established

Local sales and use taxes, exemption for nonresident Alabama taxpayers established

Taxes
Passed Legislature

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

Sponsor
Albritton
Last action
2026-01-13
Official status
Pending Committee Action in House of Origin
Effective date
Not listed

Plain English Breakdown

The official text states the bill passed both chambers and reached final enrollment in metadata, but also lists a last action of 'Pending Committee Action,' creating uncertainty about its current legislative status.

Exemption for Nonresident Alabama Taxpayers from Local Sales Taxes

This bill exempts Alabama residents who shop in cities where they do not live from paying municipal sales and use taxes on physical items, provided they show proof of residency.

What This Bill Does

  • Exempts purchases of tangible personal property by an Alabama resident living outside the municipality from municipal sales and use taxes.
  • Requires buyers to provide proof of residency to receive this tax exemption.

Who It Names or Affects

  • Alabama residents who buy items in cities where they do not live
  • Municipalities that collect local sales and use taxes

Terms To Know

Tangible personal property
Physical items you can touch, such as clothes or electronics.
Municipality
A city or town with its own local government.

Limits and Unknowns

  • The law takes effect on September 1, 2026.
  • This exemption applies only to municipal taxes and does not change state sales tax rules.

Bill History

  1. 2026-01-13 Senate

    Pending Committee Action in House of Origin

  2. 2026-01-13 Senate

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

Official Summary Text

Local sales and use taxes, exemption for nonresident Alabama taxpayers established

Current Bill Text

Read the full stored bill text 
SB37 INTRODUCED
Page 0
SB37
NR6F5TJ-1
By Senator Albritton
RFD: Finance and Taxation General Fund
First Read: 13-Jan-26
PFD: 18-Dec-25
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NR6F5TJ-1 12/17/2025 KHF (F)KHF 2025-3720
Page 1
PFD: 18-Dec-25
SYNOPSIS:
Under existing law, sales of tangible personal
property in Alabama are subject to state and local
sales and use taxes.
This bill would exempt sales of tangible
personal property to an Alabama resident who does not
reside within the municipality from municipal sales and
use taxes.
A BILL
TO BE ENTITLED
AN ACT
Relating to sales and use taxes; to exempt sales of
tangible personal property to an Alabama resident who does not
reside within the municipality from municipal sales and use
taxes.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Notwithstanding the provisions of Section
40-23-4.1, Code of Alabama 1975, purchases of tangible
personal property by an Alabama taxpayer in an Alabama
municipality other than his or her place of residence shall be
exempt from the payment of any municipal sales and use taxes
upon proof of residency by the taxpayer.
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SB37 INTRODUCED
Page 2
upon proof of residency by the taxpayer.
Section 2. This act shall become effective on September
1, 2026.
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