Huntsville City Council has approved an ordinance removing city sales and use taxes from hearing aids, though residents will have to wait until next year for the exemption to take effect.
Tax exemption begins in September 2027
The ordinance was approved Sept. 24 and is scheduled to take effect Sept. 1, 2027. The exemption will remain in place through Sept. 30, 2029, aligning with the period established under Alabama law.
District 5 Councilman John Meredith sponsored the ordinance after introducing it earlier in September. The proposal initially raised concerns about the potential loss of roughly $150,000 in annual city revenue.
City expects a smaller budget impact
Because the exemption will not begin until the next fiscal year, City Administrator John Hamilton said the financial impact should be easier for Huntsville to absorb.
The estimated loss would be about $12,500 during the remaining portion of the city’s fiscal 2027 budget, which totals approximately $360 million.
The delayed start also gives the city additional time to account for the revenue change in its future budget planning.
Other Alabama communities have similar exemptions
Support for the ordinance was also raised during the council meeting’s public comment period. Huntsville resident Marcus White and Madison resident Tara Bailey spoke about the importance of keeping hearing aids affordable for people who rely on them.
Alabama already exempts hearing instruments from the state sales tax through September 2029. Other communities, including Madison, Colbert County, Baldwin County and Opelika, have also adopted local exemptions.
Once Huntsville’s ordinance takes effect, qualifying hearing aid purchases within the city will no longer be subject to the city’s sales and use tax.
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