Alabama 2022 Regular Session

Alabama House Bill HB10

Introduced

1/11/22

Refer

1/11/22

Engrossed

2/3/22

Refer

2/3/22

Enrolled

3/17/22

Chaptered

3/29/22

Passed

3/29/22

Caption

Taxation, commercial fishing, ad valorem tax exemption for vessels and equipment, sales and use taxes exemption for bait, levy of excise tax at a rate differential of one and one-half percent on purchase and storage of vessels and machinery used for commercial fishing, Secs. 40-9-1, 40-23-1, 40-23-4, 40-23-37, 40-23-60, 40-23-63 am'd.

Impact

The proposed changes aim to bolster the commercial fishing sector by reducing operating costs for fishermen and investing in infrastructure improvements that can enhance economic activity in related businesses. This bill reflects an effort to support local economies engaged in fishing, stimulate job creation, and promote sustainable practices in the industry. The removal of ad valorem taxes could incentivize more investment in commercial fishing operations, possibly leading to growth in fishery-related jobs.

Summary

House Bill 10 addresses taxation laws concerning the commercial fishing industry in Alabama. Specifically, it amends sections of the Code of Alabama 1975 to exempt all commercial fishing vessels and equipment from ad valorem taxation, which is a tax based on property value. Additionally, the bill provides exemptions for bait and other materials required by commercial fishermen. A new tax differentiation is also introduced, placing a levy of one and one-half percent on the purchase and storage of vessels and machinery used in commercial fishing. The intent is to alleviate financial burdens on the fishing industry while ensuring that its operations remain economically viable.

Sentiment

Sentiment toward HB10 appears to be largely positive among stakeholders within the fishing community, who argue that the bill will help them remain competitive and maintain profitability. However, there may be concerns among fiscal conservatives about the potential loss of tax revenue and how this exemption could impact state funding for public services. Overall, the feedback indicates a supportive view from the fishing industry, while caution remains regarding broader fiscal implications.

Contention

Notable points of contention may arise around the implementation of the new tax structures including how the one and one-half percent levy will be administered and whether it adequately compensates for the elimination of the ad valorem tax revenue. There may also be discussions regarding the fairness of benefiting one industry over others, along with the potential need for comprehensive reviews of the fishing policies to ensure that the economic interests align with sustainable fishing practices.

Latest HB10 Activity

Companion Bills

No companion bills found.

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