The Alabama House has passed a bill to create a sales tax holiday for outdoors equipment and supplies, including gear for sports, hunting, fishing, boating, and camping, but the legislation is contingent on a second bill also passing.

The Alabama Adventure Awaits sales tax holiday would exempt a wide range of equipment from the state’s 4% sales tax during the first weekend of May next year and the two following years. The legislation would expire after 2027.

The bill, HB257 by Rep. Joe Lovvorn, R-Auburn, would allow counties and cities to also waive their sales taxes on the covered merchandise.

The House passed HB257 by a vote of 102-0 on Tuesday. It moves to the Senate.

However, HB257 will not take effect unless lawmakers approve another bill that would increase the sales tax rate that people pay for online purchases, a tax called the Simplified Sellers Use Tax (SSUT).

That bill, HB258 by Rep. Chris England, D-Tuscaloosa, was also on the House calendar Tuesday. But the House delayed action on it to allow for more work on the legislation.

HB258 would increase the SSUT from an 8% rate to 9.33%. HB258 says the increase is justified because brick-and-mortar retailers must collect sales tax rates that exceed the 8% rate charged by online retailers, a combination of state and local tax rates that add up to a total rate of 10% in some cities.

“The aim of this legislation is to level the playing field and to encourage the longevity of Alabama businesses that employ our citizens and add to the vibrancy of our communities,” the bill says.

According to a fiscal note prepared by the Legislative Services Agency, HB258 would increase revenues by $121 million a year. Of that, 65% would go to municipalities, 24% would go to county and city school boards, and 18% would go to counties.

If HB258 passes, it will not take effect unless HB257 is approved.

The fiscal note for HB257 estimated the sales tax holiday would reduce revenues to the Education Trust Fund, which funds public schools, by $14.2 million annually. It would reduce sales tax revenues to counties by $7.6 million annually and to municipalities by $11.3 million. That assumes all local governments adopted the holiday.

Some of the items the sales tax holiday would cover include, but is not limited to:

• Boating and water activity supplies, including life preservers, floats, water skis, inflatable tubes capable of being towed; paddleboards and surfboards; and canoes and kayaks.
• Camping supplies, including tents, sleeping bags, hammocks, camping stoves, camping chairs, lanterns and flashlights.
• Sports or recreational equipment, including ballet and tap shoes, athletic shoes and cleats, gloves for baseball, golf, and boxing, roller skates, and shoulder pads.
• Fishing supplies including rods and reels, tackle boxes, bait and fishing tackle.
• Hunting supplies, including firearms, ammunition, archery equipment, off-road vehicles, such as all-terrain vehicles (ATVs), hunting apparel, and tree stands.
• General outdoor supplies, including sunscreen, sunblock, or insect repellent, sunglasses, binoculars, outdoor grills, bicycles and bicycle helmets.
• Gun safes and gun safety equipment.

Some of those items are exempt only up to a certain price point. For example, canoes that sell for up to $500 would be exempt, and outdoor grills that sell for up to $250 would be exempt.