Taxation; to exempt certain community foundations from sales and use taxes

Sales tax breaks for community foundations

Alabama exempts 10 named community foundations from state sales and use taxes from September 1, 2026, through August 31, 2031. They are Black Belt Community Foundation; Central Alabama Community Foundation; Community Foundation of Greater Birmingham; Community Foundation of Greater Decatur; Community Foundation of Greater Huntsville; Community Foundation of Northeast Alabama; Community Foundation of South Alabama; Community Foundation of West Alabama; Limestone Area Community Foundation; and Walker Area Community Foundation. Counties and cities can also grant local sales and use tax exemptions during that period under state law. Local savings apply only where the county or city grants the exemption. Each foundation must file an annual information report with the Department of Revenue, following Section 40-9-61 and related rules. The reported information is not protected by the tax confidentiality rules in Section 40-2A-10. The department must send this information to the Legislative Services Agency’s Fiscal Division. The section creating the new exemption takes effect immediately; the existing exemption is repealed January 1, 2027.