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HB 3

TAX/CORP FRANCHISE: Repeals the corporation franchise tax and limits eligibility of certain credits to be claimed against corporation franchise tax (Item #3) (EN -$574,000,000 RV See Note)

2024 Third Extraordinary Session Introduced by Julie Emerson and 1 co-sponsor

HB 3 exempts retail sales of fish and seafood from state and local taxes, supporting local fishermen and potentially lowering prices for consumers in Alabama.

Signed by the Governor. Becomes Act No. 6.
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WeVote Research Nonpartisan
Bill Summary · HB 3

Summary of Bill HB 3: Tax Exemption for Retail Sales of Fish and Seafood

Bill Number: HB 3
Introduced By: Representative Brown
Introduced On: June 25, 2025
Current Status: Read for the first time and referred to the House Committee on Ways and Means Education
Effective Date: September 1, 2026

Purpose and Intent

Bill HB 3 aims to provide a tax exemption for certain retail sales of fish and other seafood in Alabama. The primary intent is to support local fishermen and seafood producers by reducing the tax burden on their sales, thereby potentially lowering prices for consumers and promoting the local seafood industry.

Key Provisions

  1. State Sales and Use Tax Exemption:

    • The bill exempts the gross proceeds from the retail sale of fish or seafood that is sold in its original or unmanufactured state by a "producer" (defined as an angler or fisherman) from state sales and use taxes.

  2. Local Sales and Use Tax Exemption:

    • Counties and municipalities may also exempt these sales from local sales and use taxes, but this exemption requires approval through a resolution or ordinance adopted by the local governing body.

  3. Definitions:

    • The term "producer" specifically refers to individuals engaged in fishing or angling, ensuring that the exemption is targeted at those directly involved in the seafood production process.

Impact

  • Beneficiaries:

    • The primary beneficiaries of this bill would be local fishermen and seafood producers, who would see a reduction in tax liabilities on their sales.
    • Consumers may benefit from potentially lower prices for fish and seafood products as a result of the tax exemption.

  • Local Governments:

    • Local governments will have the option to adopt their own exemptions, which could lead to varying tax policies across different municipalities and counties.

Procedural Aspects

  • The bill was first read on January 13, 2026, and is currently pending committee action in the House of Origin (Ways and Means Education).
  • If passed, the provisions of this bill will take effect on September 1, 2026, allowing time for local governments to consider and implement any necessary resolutions or ordinances.

Conclusion

HB 3 represents an effort to bolster Alabama's seafood industry by alleviating tax burdens on producers. By providing both state and optional local tax exemptions, the bill seeks to enhance the economic viability of local fishing operations and make seafood more affordable for consumers.

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

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