Counties and Municipalities Opting into
County and Municipal Sales and Use Tax Exemptions
Pursuant to Act 2025-280
Pursuant to Act 2025-280, any law that enacts or amends a sales and use tax exemption shall apply only to state taxes and shall not apply to county or municipal taxes, unless all of the following are satisfied:
- The law provides for exemption of county or municipal sales and use tax.
- The exemption is approved by resolution or ordinance of the county commission or municipality.
- The county commission or municipality provides notice of the resolution or ordinance to ALDOR by July 1 prior to the effective date of the exemption.
What must be included in the resolution or ordinance?
The resolution or ordinance must include:
- An effective date of September 1 of a given year.
- The duration of the exemption, which must be in fiscal year increments or in perpetuity.
Can the county commission or municipality later rescind the resolution (i.e., can the county commission or municipality stop offering the exemption)?
Yes, but the rescission will not be effective until September 1 following the date that the county commission or municipality provides notice of the rescission to ALDOR. The notice must be provided by July 1 for the rescission to become effective on September 1.
How will the county commission or municipality provide notice of the resolution or ordinance to ALDOR?
Resolutions and ordinances may be provided to ALDOR through the local government portal.
Does Act 2025-280 apply to the Back-to-School and Severe Weather Tax Holidays?
No. Tax holiday ordinances and resolutions do not fall under Act 2025-280. Pursuant to Act 2025-309, the tax holidays have their own specific notification requirements and dates.
How will taxpayers know which local jurisdictions have opted in?
ALDOR will publish and maintain a list of county and municipal sales and use tax exemptions that are adopted pursuant to the act.
When does Act 2025-280 become effective?
Act 2025-280 became effective on May 6, 2025.