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Alabama: Exemption to Private Schools

  • Apr 14, 2014 | Gail Cole

 Lunches sold by certain private schools are exempt from sales tax in Alabama.

Alabama now allows an exemption from sales tax for tangible personal property sold to, or used, consumed or stored by certain private educational institutions located in the state. House Bill 129 took effect April 7, 2014; the exemptions may be applied retroactively to “all open tax periods and all periods for which a preliminary or final assessment of tax could be entered,” under Alabama law.

Eligible private educational institutions are those that offer “conventional and traditional courses of study,” such as offered by public schools, colleges, or universities” in Alabama. Nursery schools, day care facilities and home schools are not eligible for the exemption. Presumably, private educational institutions offering unconventional or nontraditional courses of study are also ineligible.

The tax exemption applies to “lunches sold within school buildings” to kindergarten, grammar school and high school students, public or private, so long as the lunches are “sold not for profit.”

How do you keep track of changing sales tax exemptions? An automated solution helps. Learn how it works.

photo credit: USDAgov via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.