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Bill

SB 120

Relating to taxation; to exempt the Alabama Eye Bank from sales and use taxes

2025 Regular Session Introduced by Jabo Waggoner

Bill exempts Alabama Eye Bank from sales and use taxes to reduce operational costs for the nonprofit tissue transplant organization serving vision restoration patients.

Currently Indefinitely Postponed
#taxation&revenue
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Bill Summary · SB 120

Legislative bill overview

SB 120 proposes to exempt the Alabama Eye Bank from state sales and use taxes on its purchases and operations. The Eye Bank is a nonprofit organization that procures, processes, and distributes corneas and other ocular tissues for transplantation to restore vision in patients with corneal disease or injury.

Why is this important

Eye banks perform critical medical functions that directly save and restore sight for patients who would otherwise face permanent blindness. Tax exemptions reduce operational costs for nonprofits, potentially allowing the Eye Bank to serve more patients or reduce costs for transplant recipients. However, this also represents forgone state revenue that must be replaced through other sources or result in reduced services elsewhere.

Potential points of contention

  • Selective tax exemption precedent: Granting exemptions to specific organizations rather than all nonprofits or medical entities raises questions about fairness and could encourage similar requests from other organizations
  • Revenue impact: The fiscal effect on Alabama's tax base is unclear; opponents may argue the state cannot afford revenue loss while supporters contend the public health benefit justifies it
  • Scope ambiguity: The bill's language regarding which purchases qualify for exemption (equipment, supplies, tissue processing materials) may create implementation complexity or unintended loopholes

Compiled from official sources — confirm details with the bill’s official record.

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