Ala. Code § 40-23-4.01 — Exemption or Rescission of County or Municipal Sales and Use Tax

(a) Notwithstanding any other laws to the contrary, any law that enacts or amends a sales and use tax exemption shall apply only to state sales and use taxes and shall not apply to county or municipal sales and use taxes, unless all of the following are satisfied:
(1) The law provides for exemption of county or municipal sales and use tax.
(2) The exemption is approved by resolution or ordinance of the county or municipality. The resolution or ordinance must include all of the following provisions:
a. An effective date of September 1 of a given year for the exemption.
b. The duration of the exemption, which must be in fiscal year increments or in perpetuity.
(3) The county commission or municipality provides notice of the resolution or ordinance to the Alabama Department of Revenue by July 1 prior to the effective date of the exemption.
(b) A county or municipality may rescind a county or municipal sales and use tax exemption by resolution or ordinance provided both of the following conditions are met:
(1) The rescission is effective beginning on September 1 of a given fiscal year.
(2) The county commission or municipality provides notice of the resolution or ordinance to the Alabama Department of Revenue by July 1 prior to the effective date of the rescission.
(c)(1) This section does not amend, repeal, or supersede any general law enacted prior to May 6, 2025, that provides an exemption from county or municipal sales and use taxes, if the law does not require adoption of a resolution or ordinance by the county or municipality for the county or municipal sales and use tax exemption to become effective.
(2) Notwithstanding any other law to the contrary, a county or municipality may not adopt a resolution or ordinance providing a county or municipal sales or use tax exemption pursuant to a general law enacted prior to May 6, 2025, unless the county or municipality complies with subdivisions (a)(2) and (a)(3).
(3) Notwithstanding any other law to the contrary, any county or municipal sales or use tax exemption adopted by a county or municipality pursuant to a general law enacted prior to May 6, 2025, shall cease to be effective beginning September 1, 2025, unless the county or municipality complies with subdivisions (a)(2) and (a)(3).
(d) The department shall publish and maintain a listing of county and municipal sales and use tax exemptions adopted as provided by this section.
(e) The department may adopt rules to administer and implement this section.
(f) This section shall not be construed to modify or supersede the process by which certificates of exemption from state and local sales and use taxes are issued pursuant to Section 40-9-14.1.