Meeting Type: BCC Regular Meeting
Meeting Date: 10/15/2024
Item Status: New
From: Heather Gwynn, Sales & Use Tax Coordinator; Beth Hodges, Budget Director
Submitted by: Beth Hodges, Budget Director
______________________________________________________________________
ITEM TITLE
Title
Resolution #2025-006 - Exempting Proceeds from the Sale of Hearing Instruments from Baldwin County Sales and Use Tax
End
STAFF RECOMMENDATION
Recommendation
Pursuant to provisions of Code of Alabama 1975 Section 40-23-4(a)(55), adopt Resolution #2025-006 which exempts all gross proceeds from the sale and use of hearing instruments from Baldwin County Sales and Use Taxes.
End
BACKGROUND INFORMATION
Background: Pursuant to Code of Alabama 1975 Section 40-23-4, as amended by Act Number 2024-400, Acts of Alabama, the State of Alabama has enacted a tax exemption excluding all gross proceeds from the sale and use of hearing instruments from the State of Alabama Sales and Use Taxes.
The Code of Alabama 1975 Section 40-23-4(a)(55) declares “For the period commencing October 1, 2024, and ending September 30, 2029, unless extended by an act of Legislature, the gross proceeds of the sale or sales of hearing instruments as defined in Section 34-14-1, including hearing aids. The exemption provided in this subdivision shall not apply to county or municipal sales taxes unless approved by resolution or ordinance adopted by the local governing body.”
Thus, the Baldwin County Commission, would like to provide exemption from all gross proceeds from the sale and use of hearing instruments from the Baldwin County Sales and Use Taxes, commencing November 1, 2024, and ending September 30, 2029, in effort to support its citizens who are in need of these costly devices. Said exemption will provide a tremendous benefit to those requiring hearing instruments and aids who experience a financial burden when purchasing these devices out-of-pocket in order to maintain a better quality of life.
Based upon the State-provided formula to determine the impact to county or municipal revenues, the County will experience an approximate revenue loss of $18,176.00 annually; with $14,541.00 related to General Fund and $3,635.00 for Highway. The estimated total impact to all Boards of Education will be approximately $81,358.00 annually.
Previous Commission action/date: N/A
FINANCIAL IMPACT
Total cost of recommendation: $18,176.00
Budget line item(s) to be used: 100.41210 Sales Tax ($14,541.00); 100.41212 Sales Tax Hwy ($3,635.00)
If this is not a budgeted expenditure, does the recommendation create a need for funding? N/A
LEGAL IMPACT
Is legal review necessary for this staff recommendation and related documents?
Yes
Reviewed/approved by: Brad Hicks, 09/23/2024
Additional comments: N/A
ADVERTISING REQUIREMENTS
Is advertising required for this recommendation? N/A
If the proof of publication affidavit is not attached, list the reason: N/A
FOLLOW UP IMPLEMENTATION
For time-sensitive follow up, select deadline date for follow up: N/A
Individual(s) responsible for follow up: Administration; Heather Gwynn, Sales & Use Tax Coordinator
Action required (list contact persons/addresses if documents are to be mailed or emailed): Administration - Upload resolution to BCAP; Sales & Use Tax - Notify taxpayers of enacted exemption
Additional instructions/notes: N/A