AL
Alabama House Bill HB382

Alabama 2022 Regular Session

Alabama House Bill HB382 Compare Versions

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11 1 HB382
2-2 217862-2
2+2 217862-1
33 3 By Representative Blackshear
44 4 RFD: Ways and Means Education
55 5 First Read: 22-FEB-22
66
7-Page 0 HB382
8-1
9-2 ENROLLED, An Act,
10-3 To amend Sections 40-23-2, Code of Alabama 1975;
11-4 relating to the taxation of sales of automobiles, motorcycles,
12-5 trucks, truck trailers, travel trailers, campers, housecars,
13-6 and semitrailers that will be registered or titled outside of
14-7 Alabama and are exported or removed from Alabama within 72
15-8 hours by the purchaser or purchaser's agent for first use
16-9 outside Alabama.
17-10 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
18-11 Section 1. Section 40-23-2, Code of Alabama 1975, is
19-12 amended to read as follows:
20-13 "§40-23-2.
21-14 "There is levied, in addition to all other taxes of
22-15 every kind now imposed by law, and shall be collected as
23-16 herein provided, a privilege or license tax against the person
24-17 on account of the business activities and in the amount to be
25-18 determined by the application of rates against gross sales, or
26-19 gross receipts, as the case may be, as follows:
27-20 "(1) Upon every person, firm, or corporation,
28-21 (including the State of Alabama and its Alcoholic Beverage
29-22 Control Board in the sale of alcoholic beverages of all kinds,
30-23 the University of Alabama, Auburn University, and all other
31-24 institutions of higher learning in the state, whether the
32-25 institutions be denominational, state, county, or municipal
33-Page 1 HB382
34-1 institutions, any association or other agency or
35-2 instrumentality of the institutions) engaged or continuing
36-3 within this state, in the business of selling at retail any
37-4 tangible personal property whatsoever, including merchandise
38-5 and commodities of every kind and character, (not including,
39-6 however, bonds or other evidences of debts or stocks, nor
40-7 sales of material and supplies to any person for use in
41-8 fulfilling a contract for the painting, repair, or
42-9 reconditioning of vessels, barges, ships, other watercraft,
43-10 and commercial fishing vessels of over five tons load
44-11 displacement as registered with the U.S. Coast Guard and
45-12 licensed by the State of Alabama Department of Conservation
46-13 and Natural Resources), an amount equal to four percent of the
47-14 gross proceeds of sales of the business except where a
48-15 different amount is expressly provided herein. Provided,
49-16 however, that any person engaging or continuing in business as
50-17 a retailer and wholesaler or jobber shall pay the tax required
51-18 on the gross proceeds of retail sales of the business at the
52-19 rates specified, when his or her books are kept so as to show
53-20 separately the gross proceeds of sales of each business, and
54-21 when his or her books are not kept he or she shall pay the tax
55-22 as a retailer, on the gross sales of the business.
56-23 "Where any used part including tires of an
57-24 automotive vehicle or a truck trailer, semitrailer, or house
58-25 trailer is taken in trade, or in a series of trades, as a
59-Page 2 HB382
60-1 credit or part payment on the sale of a new or rebuilt part or
61-2 tire, the tax levied herein shall be paid on the net
62-3 difference, that is, the price of the new or used part or tire
63-4 sold less the credit for the used part or tire taken in trade,
64-5 provided, however, this provision shall not be construed to
65-6 include batteries.
66-7 "(2) Upon every person, firm, or corporation engaged
67-8 or continuing within this state in the business of conducting
68-9 or operating places of amusement or entertainment, billiard
69-10 and pool rooms, bowling alleys, amusement devices, musical
70-11 devices, theaters, opera houses, moving picture shows,
71-12 vaudevilles, amusement parks, athletic contests, including
72-13 wrestling matches, prize fights, boxing and wrestling
73-14 exhibitions, football and baseball games, (including athletic
74-15 contests, conducted by or under the auspices of any
75-16 educational institution within this state, or any athletic
76-17 association thereof, or other association whether the
77-18 institution or association be a denominational, a state, or
78-19 county, or a municipal institution, or association or a state,
79-20 county, or city school, or other institution, association or
80-21 school), skating rinks, race tracks, golf courses, or any
81-22 other place at which any exhibition, display, amusement, or
82-23 entertainment is offered to the public or place or places
83-24 where an admission fee is charged, including public bathing
84-25 places, public dance halls of every kind and description
85-Page 3 HB382
86-1 within the State of Alabama, an amount equal to four percent
87-2 of the gross receipts of any such business. Provided, however,
88-3 notwithstanding any language to the contrary in the prior
89-4 portion of this subdivision, the tax provisions so specified
90-5 shall not apply to any athletic event conducted by a public or
91-6 nonpublic primary or secondary school or any athletic event
92-7 conducted by or under the auspices of the Alabama High School
93-8 Athletic Association. The tax amount which would have been
94-9 collected pursuant to this subdivision shall continue to be
95-10 collected by the public or nonpublic primary or secondary
96-11 school, but shall be retained by the school which collected it
97-12 and shall be used by the school for school purposes.
98-13 "(3) Upon every person, firm, or corporation engaged
99-14 or continuing within this state in the business of selling at
100-15 retail machines used in mining, quarrying, compounding,
101-16 processing, and manufacturing of tangible personal property an
102-17 amount equal to one and one-half percent of the gross proceeds
103-18 of the sale of the machines. The term "machine," as herein
104-19 used, shall include machinery which is used for mining,
105-20 quarrying, compounding, processing, or manufacturing tangible
106-21 personal property, and the parts of the machines, attachments,
107-22 and replacements therefor, which are made or manufactured for
108-23 use on or in the operation of the machines and which are
109-24 necessary to the operation of the machines and are customarily
110-25 so used.
111-Page 4 HB382
112-1 "(4) Upon every person, firm, or corporation engaged
113-2 or continuing within this state in the business of selling at
114-3 retail any automotive vehicle or truck trailer, semitrailer,
115-4 or house trailer, or mobile home set-up materials and supplies
116-5 including but not limited to steps, blocks, anchoring, cable
117-6 pipes, and any other materials pertaining thereto an amount
118-7 equal to two percent of the gross proceeds of sale of the
119-8 automotive vehicle or truck trailer, semitrailer, or house
120-9 trailer, or mobile home set-up materials and supplies
121-10 provided, however, where a person subject to the tax provided
122-11 for in this subdivision withdraws from his or her stock in
123-12 trade any automotive vehicle or truck trailer, semitrailer, or
124-13 house trailer for use by him or her or by his or her employee
125-14 or agent in the operation of the business, there shall be
126-15 paid, in lieu of the tax levied herein, a fee of five dollars
127-16 ($5) per year or part thereof during which the automotive
128-17 vehicle, truck trailer, semitrailer, or house trailer shall
129-18 remain the property of the person. Each year or part thereof
130-19 shall begin with the day or anniversary date, as the case may
131-20 be, of such withdrawal and shall run for the 12 succeeding
132-21 months or part thereof during which the automotive vehicle,
133-22 truck trailer, semitrailer, or house trailer shall remain the
134-23 property of the person.
135-24 "Where any used automotive vehicle or truck trailer,
136-25 semitrailer, or house trailer is taken in trade or in a series
137-Page 5 HB382
138-1 of trades, as a credit or part payment on the sale of a new or
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8+2
9+3
10+4
11+5
12+6
13+7
14+8 SYNOPSIS: Under current law, sales of automobiles,
15+9 motorcycles, trucks, truck trailers, or
16+10 semitrailers, excluding travel trailers or
17+11 housecars, that will be registered or titled
18+12 outside Alabama, that are exported or removed from
19+13 Alabama within 72 hours by the purchaser or the
20+14 purchaser's agent for first use outside Alabama,
21+15 are not subject to Alabama sales tax provided the
22+16 state sales tax laws of the state in which the
23+17 purchaser will title or register the vehicle allows
24+18 an Alabama resident to purchase a motor vehicle for
25+19 first titling and registering in Alabama without
26+20 the payment of tax.
27+21 This bill would remove the exclusion of
28+22 housecars and travel trailers from the 72-hour
29+23 drive-out provisions and provide that sales of
30+24 housecars, campers, and travel trailers that meet
31+25 those requirements are not subject to sales tax.
32+26 This bill would also require a purchaser to
33+27 provide documentation to the seller that the
34+Page 1 1 purchaser is not a resident of Alabama for a travel
35+2 trailer, camper, or housecar to qualify as a
36+3 vehicle that will be registered or titled outside
37+4 Alabama.
38+5
39+6 A BILL
40+7 TO BE ENTITLED
41+8 AN ACT
42+9
43+10 To amend Sections 40-23-2, Code of Alabama 1975;
44+11 relating to the taxation of sales of automobiles, motorcycles,
45+12 trucks, truck trailers, travel trailers, campers, housecars,
46+13 and semitrailers that will be registered or titled outside of
47+14 Alabama and are exported or removed from Alabama within 72
48+15 hours by the purchaser or purchaser's agent for first use
49+16 outside Alabama.
50+17 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
51+18 Section 1. Section 40-23-2, Code of Alabama 1975, is
52+19 amended to read as follows:
53+20 "§40-23-2.
54+21 "There is levied, in addition to all other taxes of
55+22 every kind now imposed by law, and shall be collected as
56+23 herein provided, a privilege or license tax against the person
57+24 on account of the business activities and in the amount to be
58+25 determined by the application of rates against gross sales, or
59+26 gross receipts, as the case may be, as follows:
60+Page 2 1 "(1) Upon every person, firm, or corporation,
61+2 (including the State of Alabama and its Alcoholic Beverage
62+3 Control Board in the sale of alcoholic beverages of all kinds,
63+4 the University of Alabama, Auburn University, and all other
64+5 institutions of higher learning in the state, whether the
65+6 institutions be denominational, state, county, or municipal
66+7 institutions, any association or other agency or
67+8 instrumentality of the institutions) engaged or continuing
68+9 within this state, in the business of selling at retail any
69+10 tangible personal property whatsoever, including merchandise
70+11 and commodities of every kind and character, (not including,
71+12 however, bonds or other evidences of debts or stocks, nor
72+13 sales of material and supplies to any person for use in
73+14 fulfilling a contract for the painting, repair, or
74+15 reconditioning of vessels, barges, ships, other watercraft,
75+16 and commercial fishing vessels of over five tons load
76+17 displacement as registered with the U.S. Coast Guard and
77+18 licensed by the State of Alabama Department of Conservation
78+19 and Natural Resources), an amount equal to four percent of the
79+20 gross proceeds of sales of the business except where a
80+21 different amount is expressly provided herein. Provided,
81+22 however, that any person engaging or continuing in business as
82+23 a retailer and wholesaler or jobber shall pay the tax required
83+24 on the gross proceeds of retail sales of the business at the
84+25 rates specified, when his or her books are kept so as to show
85+26 separately the gross proceeds of sales of each business, and
86+Page 3 1 when his or her books are not kept he or she shall pay the tax
87+2 as a retailer, on the gross sales of the business.
88+3 "Where any used part including tires of an
89+4 automotive vehicle or a truck trailer, semitrailer, or house
90+5 trailer is taken in trade, or in a series of trades, as a
91+6 credit or part payment on the sale of a new or rebuilt part or
92+7 tire, the tax levied herein shall be paid on the net
93+8 difference, that is, the price of the new or used part or tire
94+9 sold less the credit for the used part or tire taken in trade,
95+10 provided, however, this provision shall not be construed to
96+11 include batteries.
97+12 "(2) Upon every person, firm, or corporation engaged
98+13 or continuing within this state in the business of conducting
99+14 or operating places of amusement or entertainment, billiard
100+15 and pool rooms, bowling alleys, amusement devices, musical
101+16 devices, theaters, opera houses, moving picture shows,
102+17 vaudevilles, amusement parks, athletic contests, including
103+18 wrestling matches, prize fights, boxing and wrestling
104+19 exhibitions, football and baseball games, (including athletic
105+20 contests, conducted by or under the auspices of any
106+21 educational institution within this state, or any athletic
107+22 association thereof, or other association whether the
108+23 institution or association be a denominational, a state, or
109+24 county, or a municipal institution, or association or a state,
110+25 county, or city school, or other institution, association or
111+26 school), skating rinks, race tracks, golf courses, or any
112+27 other place at which any exhibition, display, amusement, or
113+Page 4 1 entertainment is offered to the public or place or places
114+2 where an admission fee is charged, including public bathing
115+3 places, public dance halls of every kind and description
116+4 within the State of Alabama, an amount equal to four percent
117+5 of the gross receipts of any such business. Provided, however,
118+6 notwithstanding any language to the contrary in the prior
119+7 portion of this subdivision, the tax provisions so specified
120+8 shall not apply to any athletic event conducted by a public or
121+9 nonpublic primary or secondary school or any athletic event
122+10 conducted by or under the auspices of the Alabama High School
123+11 Athletic Association. The tax amount which would have been
124+12 collected pursuant to this subdivision shall continue to be
125+13 collected by the public or nonpublic primary or secondary
126+14 school, but shall be retained by the school which collected it
127+15 and shall be used by the school for school purposes.
128+16 "(3) Upon every person, firm, or corporation engaged
129+17 or continuing within this state in the business of selling at
130+18 retail machines used in mining, quarrying, compounding,
131+19 processing, and manufacturing of tangible personal property an
132+20 amount equal to one and one-half percent of the gross proceeds
133+21 of the sale of the machines. The term "machine," as herein
134+22 used, shall include machinery which is used for mining,
135+23 quarrying, compounding, processing, or manufacturing tangible
136+24 personal property, and the parts of the machines, attachments,
137+25 and replacements therefor, which are made or manufactured for
138+26 use on or in the operation of the machines and which are
139+Page 5 1 necessary to the operation of the machines and are customarily
140+2 so used.
141+3 "(4) Upon every person, firm, or corporation engaged
142+4 or continuing within this state in the business of selling at
143+5 retail any automotive vehicle or truck trailer, semitrailer,
144+6 or house trailer, or mobile home set-up materials and supplies
145+7 including but not limited to steps, blocks, anchoring, cable
146+8 pipes, and any other materials pertaining thereto an amount
147+9 equal to two percent of the gross proceeds of sale of the
148+10 automotive vehicle or truck trailer, semitrailer, or house
149+11 trailer, or mobile home set-up materials and supplies
150+12 provided, however, where a person subject to the tax provided
151+13 for in this subdivision withdraws from his or her stock in
152+14 trade any automotive vehicle or truck trailer, semitrailer, or
153+15 house trailer for use by him or her or by his or her employee
154+16 or agent in the operation of the business, there shall be
155+17 paid, in lieu of the tax levied herein, a fee of five dollars
156+18 ($5) per year or part thereof during which the automotive
157+19 vehicle, truck trailer, semitrailer, or house trailer shall
158+20 remain the property of the person. Each year or part thereof
159+21 shall begin with the day or anniversary date, as the case may
160+22 be, of such withdrawal and shall run for the 12 succeeding
161+23 months or part thereof during which the automotive vehicle,
162+24 truck trailer, semitrailer, or house trailer shall remain the
163+25 property of the person.
164+26 "Where any used automotive vehicle or truck trailer,
165+27 semitrailer, or house trailer is taken in trade or in a series
166+Page 6 1 of trades, as a credit or part payment on the sale of a new or
139167 2 used vehicle, the tax levied herein shall be paid on the net
140168 3 difference, that is, the price of the new or used vehicle sold
141169 4 less the credit for the used vehicle taken in trade.
142170 5 "Sales of automobiles, motorcycles, trucks, truck
143171 6 trailers, travel trailers, campers, housecars, or
144172 7 semitrailers, excluding travel trailers or housecars as
145173 8 defined in Section 40-12-240, that will be registered or
146174 9 titled outside Alabama, that are exported or removed from
147175 10 Alabama within 72 hours by the purchaser or his or her agent
148176 11 for first use outside Alabama are subject to Alabama sales tax
149177 12 in an amount equal to only the state automotive sales tax
150178 13 rate, unless the sales tax laws of the state in which the
151179 14 purchaser will title or register the vehicle allows an Alabama
152180 15 resident to purchase a motor vehicle for first titling and
153181 16 registering in Alabama without the payment of tax to that
154182 17 state. However, in no case shall the amount of Alabama state
155183 18 sales tax due on a motor vehicle that will be registered or
156184 19 titled for use in another state exceed the amount of sales tax
157185 20 that would otherwise have been due in the state where the
158186 21 vehicle will be registered or titled for first use. In order
159187 22 to qualify as a travel trailer, camper, or housecar that will
160188 23 be registered or titled for use in another state, the
161189 24 purchaser must provide documentation to the seller that the
162190 25 purchaser is not a resident of Alabama as required by the
163-Page 6 HB382
164-1 Department of Revenue. No such proof is required in the sale
165-2 of an automobile, motorcycle, truck, truck trailer, or
166-3 semitrailer, excluding a travel trailer, camper, or housecar.
167-4 The tax collected under this export provision shall be Alabama
168-5 sales tax and shall exclude county and municipal sales tax. On
169-6 January 1, 2016, and each January 1 thereafter, the Alabama
170-7 Department of Revenue shall publish to the state's website a
171-8 list of states that do not allow drive out provisions to
172-9 Alabama residents. Should the list, required by this
173-10 subsection and relied upon by the taxpayer, be incorrect, the
174-11 taxpayer shall be relieved from the liability concerning the
175-12 miscollection of the state automotive sales tax. Sales of all
176-13 other vehicles such as mobile homes, motor bikes, all terrain
177-14 vehicles, and boats do not qualify for the export exemption
178-15 provision and are taxable unless the dealer can provide
179-16 factual evidence that the vehicle was delivered outside of
180-17 Alabama or to a common carrier for transportation outside
181-18 Alabama. In order for the sale to be exempt from Alabama tax,
182-19 the information relative to the exempt sale shall be
183-20 documented on forms approved by the Revenue Department.
184-21 "Of the total $.02 tax on each dollar of sale
185-22 provided hereunder, 58 percent of the total tax generated by
186-23 this subdivision (4) shall be deposited to the credit of the
187-24 Education Trust Fund; and 42 percent of the total tax
188-Page 7 HB382
189-1 generated by this subdivision (4) shall be deposited to the
190-2 credit of the State General Fund.
191-3 "(5) Upon every person, firm, or corporation engaged
192-4 or continuing within this state in the business of selling
193-5 through coin-operated dispensing machines, food and food
194-6 products for human consumption, not including beverages other
195-7 than coffee, milk, milk products, and substitutes therefor,
196-8 there is levied a tax equal to three percent of the cost of
197-9 the food, food products, and beverages sold through the
198-10 machines, which cost for the purpose of this subdivision shall
199-11 be the gross proceeds of sales of the business."
200-12 Section 2. This act shall become effective on the
201-13 first day of the third month following its passage and
202-14 approval by the Governor, or its otherwise becoming law.
203-Page 8 HB382
204-1
205-2
206-3
207-4
208-Speaker of the House of Representatives
209-
210-5
211-6 President and Presiding Officer of the Senate
212-House of Representatives7
213-I hereby certify that the within Act originated in8
214-9 and was passed by the House 09-MAR-22.
215-10
216-11 Jeff Woodard
217-12 Clerk
218-13
219- 14
220- 15
221-Senate16 05-APR-22 Passed
222- 17
191+26 Department of Revenue. No such proof is required in the sale
192+27 of an automobile, motorcycle, truck, truck trailer, or
193+Page 7 1 semitrailer, excluding a travel trailer, camper, or housecar.
194+2 The tax collected under this export provision shall be Alabama
195+3 sales tax and shall exclude county and municipal sales tax. On
196+4 January 1, 2016, and each January 1 thereafter, the Alabama
197+5 Department of Revenue shall publish to the state's website a
198+6 list of states that do not allow drive out provisions to
199+7 Alabama residents. Should the list, required by this
200+8 subsection and relied upon by the taxpayer, be incorrect, the
201+9 taxpayer shall be relieved from the liability concerning the
202+10 miscollection of the state automotive sales tax. Sales of all
203+11 other vehicles such as mobile homes, motor bikes, all terrain
204+12 vehicles, and boats do not qualify for the export exemption
205+13 provision and are taxable unless the dealer can provide
206+14 factual evidence that the vehicle was delivered outside of
207+15 Alabama or to a common carrier for transportation outside
208+16 Alabama. In order for the sale to be exempt from Alabama tax,
209+17 the information relative to the exempt sale shall be
210+18 documented on forms approved by the Revenue Department.
211+19 "Of the total $.02 tax on each dollar of sale
212+20 provided hereunder, 58 percent of the total tax generated by
213+21 this subdivision (4) shall be deposited to the credit of the
214+22 Education Trust Fund; and 42 percent of the total tax
215+23 generated by this subdivision (4) shall be deposited to the
216+24 credit of the State General Fund.
217+25 "(5) Upon every person, firm, or corporation engaged
218+26 or continuing within this state in the business of selling
219+27 through coin-operated dispensing machines, food and food
220+Page 8 1 products for human consumption, not including beverages other
221+2 than coffee, milk, milk products, and substitutes therefor,
222+3 there is levied a tax equal to three percent of the cost of
223+4 the food, food products, and beverages sold through the
224+5 machines, which cost for the purpose of this subdivision shall
225+6 be the gross proceeds of sales of the business."
226+7 Section 2. This act shall become effective on the
227+8 first day of the third month following its passage and
228+9 approval by the Governor, or its otherwise becoming law.
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