Local sales and use taxes, municipal sales and use taxes collected from nonresident Alabama taxpayers refunded

SB 36 requires Alabama municipalities to refund sales and use taxes paid by Alabama residents when purchasing goods from another Alabama city or town. It directly affects Alabama residents who buy goods outside their home municipality (e.g., a Montgomery resident buying in Birmingham) and pay local taxes there. To get a refund, residents must submit proof of payment and residency once yearly, and municipalities must pay interest starting 90 days after a valid refund request is received. The law takes effect October 1, 2026, and applies only to taxes collected on tangible personal property.