Alabama 2022 Regular Session

Alabama House Bill HB400 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1 HB400
2		-	2 218011-3
	2	+	2 218011-2
3	3		3 By Representative Kitchens
4	4		4 RFD: Agriculture and Forestry
5	5		5 First Read: 23-FEB-22
6	6
7		-	Page 0 HB400
8		-	1
9		-	2 ENROLLED, An Act,
10		-	3 Relating to exemptions from ad valorem taxation; to
11		-	4 amend Section 40-9-1, Code of Alabama 1975; and to exempt
12		-	5 grain bins from ad valorem taxation.
13		-	6 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
14		-	7 Section 1. Section 40-9-1, Code of Alabama 1975, is
15		-	8 amended to read as follows:
16		-	9 "§40-9-1.
17		-	10 "The following property and persons shall be exempt
18		-	11 from ad valorem taxation and none other:
19		-	12 "(1) All bonds of the United States and this state
20		-	13 and all county and municipal bonds issued by counties and
21		-	14 municipalities in this state, all property, real and personal,
22		-	15 of the United States and this state and of county and
23		-	16 municipal corporations in this state; all cemeteries, all
24		-	17 property, real and personal, used exclusively for religious
25		-	18 worship, for schools or for purposes purely charitable;
26		-	19 provided, that property, real or personal, owned by any
27		-	20 educational, religious or charitable institution, society or
28		-	21 corporation let for rent or hire or for use for business
29		-	22 purposes shall not be exempt from taxation, notwithstanding
30		-	23 that the income from such property shall be used exclusively
31		-	24 for education, religious or charitable purposes; all
32		-	25 mortgages, together with the notes, debts and credits secured
33		-	Page 1 HB400
34		-	1 thereby on real and personal property situated in this state,
35		-	2 which mortgages have been filed for record and the privilege
36		-	3 tax paid thereon; all security agreements and security
37		-	4 interests under the Uniform Commercial Code, together with the
38		-	5 notes, debts and credits secured thereby; all money on deposit
39		-	6 in any bank or banking institution and all other solvent
40		-	7 credits; all warrants issued by county boards of education and
41		-	8 city boards of education for the purpose of erecting,
42		-	9 repairing, furnishing school buildings or for other school
43		-	10 purposes;
44		-	11 "(2) All property, real or personal, used
45		-	12 exclusively for hospital purposes, to the amount of $75,000,
46		-	13 where such hospitals maintain wards for charity patients or
47		-	14 give treatment to such patients; provided, that the treatment
48		-	15 of charity patients constitutes at least 15 percent of the
49		-	16 business of such hospitals; provided further, that such
50		-	17 hospital need not be assessed for taxation if the owner or
51		-	18 manager shall file with the county tax assessor wherein such
52		-	19 hospital is located within the time allowed for assessing such
53		-	20 property for taxation a certificate that such hospital has
54		-	21 done 15 percent charity work in the preceding tax year; and
55		-	22 further provided, that such hospital through its owner or
56		-	23 manager shall have until the expiration of the preceding tax
57		-	24 year to class its work and ascertain whether or not such
58		-	Page 2 HB400
59		-	1 hospital has done 15 percent of its treatment of patients as
60		-	2 charity work;
61		-	3 "(3) The shares of the capital stock of any
62		-	4 corporation owning and operating a hospital, to the extent of
63		-	5 $75,000 in value; provided, that said corporation maintains
64		-	6 wards for charity patients and gives treatment to such
65		-	7 patients, which treatment constitutes at least 15 percent of
66		-	8 the business of the hospital of said corporation; provided,
67		-	9 that the total exemption granted to any such corporation shall
68		-	10 not exceed $75,000, taking into consideration its real and
69		-	11 personal property and the value of its shares of capital
70		-	12 stock;
71		-	13 "(4) All property owned by the American Legion or by
72		-	14 Veterans of Foreign Wars or by the Disabled American Veterans,
73		-	15 or any post thereof; provided, that such property is used and
74		-	16 occupied exclusively by said organization;
75		-	17 "(5) All the property of literary and scientific
76		-	18 institutions and literary societies, when employed or used in
77		-	19 the regular business of such institutions;
78		-	20 "(6) The libraries of ministers of the gospel, all
79		-	21 libraries other than those of a professional character and all
80		-	22 religious books kept for sale by ministers of the gospel and
81		-	23 colporteurs;
82		-	Page 3 HB400
83		-	1 "(7) The property of deaf mutes and insane persons
84		-	2 to the extent of $3,000 and the property of blind persons to
85		-	3 the extent of $12,000;
86		-	4 "(8) All family portraits;
87		-	5 "(9) All cotton, livestock or agricultural products
88		-	6 which have been raised or grown in the State of Alabama and
89		-	7 which shall remain in the hands of the producer thereof, or
90		-	8 his landlord, or in the hands of a cooperative association for
91		-	9 all time, and for a period of one year in the hands of the
92		-	10 purchaser or the manufacturer;
93		-	11 "(10) All cotton, wherever grown, stored in licensed
94		-	12 warehouses in the State of Alabama for a period not exceeding
95		-	13 12 months;
96		-	14 "(11) Provisions and supplies on hand for the
97		-	15 current year for the use of the family and the making of
98		-	16 crops; all wearing apparel; farming tools; tools and
99		-	17 implements of mechanics to the value of $200; all livestock,
100		-	18 including mules, studs, jacks and jennets, cattle, horses,
101		-	19 cows, calves, hogs, sheep and goats; household and kitchen
102		-	20 furniture and one sewing machine;
103		-	21 "(12) No license or taxation of any character,
104		-	22 except franchise taxes provided by Section 229 of the
105		-	23 Constitution of the State of Alabama, shall be collected or
106		-	24 required to be paid to the state or any county or municipality
107		-	25 therein by any state or county fair, agricultural association,
108		-	Page 4 HB400
109		-	1 stock, kennel or poultry show. Athletic stadiums owned and
110		-	2 controlled by universities, schools or colleges and which are
111		-	3 used exclusively for the purpose of promoting intercollegiate
112		-	4 or interschool athletics; provided, that the revenue received
113		-	5 from athletic stadiums, when admission is charged, shall be
114		-	6 used for the benefit of athletic associations of such
115		-	7 universities, colleges or schools. Nothing contained in this
116		-	8 subdivision shall be construed to prohibit any municipality,
117		-	9 county or state from imposing any license tax upon or for the
118		-	10 privilege of engaging in the business of supplying services
119		-	11 for hire or reward or selling commodities other than
120		-	12 livestock, farm products or farm implements or conducting or
121		-	13 operating devices or games of skill or amusements or other
122		-	14 games or devices, or conducting or operating shows, displays
123		-	15 or exhibits other than shows, displays or exhibits of
124		-	16 agricultural implements, farm products, livestock and athletic
125		-	17 prowess;
126		-	18 "(13) All material, including without limitation
127		-	19 coke, to be compounded or further manufactured, when stocked
128		-	20 at any plant or furnace for manufacturing purposes in Alabama;
129		-	21 "(14) All articles manufactured in Alabama,
130		-	22 including pig iron, in the hands of the producer or
131		-	23 manufacturer thereof, for 12 months after its production or
132		-	24 manufacture;
133		-	Page 5 HB400
134		-	1 "(15) All property, both real and personal, owned by
135		-	2 any unit or organization of the Alabama National Guard
136		-	3 officially recognized as such by the federal government and
137		-	4 organized and maintained by the state, and all property owned
138		-	5 by shares and used exclusively by and kept exclusively in the
139		-	6 possession of any such unit or organization of the Alabama
140		-	7 National Guard, the annual rent or hire of which is not in
141		-	8 excess of the annual state, county and municipal taxes on said
142		-	9 property shall be exempt from taxation by the state, and the
143		-	10 county and municipality in which the same may be situated;
144		-	11 "(16) All poultry;
145		-	12 "(17) The property of all incompetent veterans to
146		-	13 the value of $3,000;
147		-	14 "(18) The following items of personal property when
148		-	15 owned by individuals for personal use in the home or usually
149		-	16 kept at the home of the owner and not carried as stocks of
150		-	17 merchandise, namely: Libraries; phonographs; pianos and other
151		-	18 musical instruments; paintings; precious stones, jewelry,
152		-	19 plate silverware, ornaments and articles of taste; watches and
153		-	20 clocks; wagons, buggies, bicycles, guns, pistols, canes, golf
154		-	21 sticks, golf bags and sporting goods; money hoarded; radios;
155		-	22 mechanical and electrical refrigerators; electrical
156		-	23 appliances;
157		-	24 "(19) All property owned by the Benevolent and
158		-	25 Protective Order of Elks, Fraternal Order of Police, Fraternal
159		-	Page 6 HB400
160		-	1 Order of Eagles or Loyal Order of Moose, or lodge thereof;
	7	+	Page 0 1 218011-2:n:02/23/2022:KBB/bm LSA2022-796R1
	8	+	2
	9	+	3
	10	+	4
	11	+	5
	12	+	6
	13	+	7
	14	+	8 SYNOPSIS: Under existing law, ad valorem taxation
	15	+	9 applies to all real property in the state unless
	16	+	10 expressly exempted by law.
	17	+	11 This bill would provide that all grain bin
	18	+	12 structures and parts used for preparing a grain for
	19	+	13 market would be exempt from ad valorem taxation.
	20	+	14
	21	+	15 A BILL
	22	+	16 TO BE ENTITLED
	23	+	17 AN ACT
	24	+	18
	25	+	19 Relating to exemptions from ad valorem taxation; to
	26	+	20 amend Section 40-9-1, Code of Alabama 1975; and to exempt
	27	+	21 grain bins from ad valorem taxation.
	28	+	22 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
	29	+	23 Section 1. Section 40-9-1, Code of Alabama 1975, is
	30	+	24 amended to read as follows:
	31	+	25 "§40-9-1.
	32	+	26 "The following property and persons shall be exempt
	33	+	27 from ad valorem taxation and none other:
	34	+	Page 1 1 "(1) All bonds of the United States and this state
	35	+	2 and all county and municipal bonds issued by counties and
	36	+	3 municipalities in this state, all property, real and personal,
	37	+	4 of the United States and this state and of county and
	38	+	5 municipal corporations in this state; all cemeteries, all
	39	+	6 property, real and personal, used exclusively for religious
	40	+	7 worship, for schools or for purposes purely charitable;
	41	+	8 provided, that property, real or personal, owned by any
	42	+	9 educational, religious or charitable institution, society or
	43	+	10 corporation let for rent or hire or for use for business
	44	+	11 purposes shall not be exempt from taxation, notwithstanding
	45	+	12 that the income from such property shall be used exclusively
	46	+	13 for education, religious or charitable purposes; all
	47	+	14 mortgages, together with the notes, debts and credits secured
	48	+	15 thereby on real and personal property situated in this state,
	49	+	16 which mortgages have been filed for record and the privilege
	50	+	17 tax paid thereon; all security agreements and security
	51	+	18 interests under the Uniform Commercial Code, together with the
	52	+	19 notes, debts and credits secured thereby; all money on deposit
	53	+	20 in any bank or banking institution and all other solvent
	54	+	21 credits; all warrants issued by county boards of education and
	55	+	22 city boards of education for the purpose of erecting,
	56	+	23 repairing, furnishing school buildings or for other school
	57	+	24 purposes;
	58	+	25 "(2) All property, real or personal, used
	59	+	26 exclusively for hospital purposes, to the amount of $75,000,
	60	+	27 where such hospitals maintain wards for charity patients or
	61	+	Page 2 1 give treatment to such patients; provided, that the treatment
	62	+	2 of charity patients constitutes at least 15 percent of the
	63	+	3 business of such hospitals; provided further, that such
	64	+	4 hospital need not be assessed for taxation if the owner or
	65	+	5 manager shall file with the county tax assessor wherein such
	66	+	6 hospital is located within the time allowed for assessing such
	67	+	7 property for taxation a certificate that such hospital has
	68	+	8 done 15 percent charity work in the preceding tax year; and
	69	+	9 further provided, that such hospital through its owner or
	70	+	10 manager shall have until the expiration of the preceding tax
	71	+	11 year to class its work and ascertain whether or not such
	72	+	12 hospital has done 15 percent of its treatment of patients as
	73	+	13 charity work;
	74	+	14 "(3) The shares of the capital stock of any
	75	+	15 corporation owning and operating a hospital, to the extent of
	76	+	16 $75,000 in value; provided, that said corporation maintains
	77	+	17 wards for charity patients and gives treatment to such
	78	+	18 patients, which treatment constitutes at least 15 percent of
	79	+	19 the business of the hospital of said corporation; provided,
	80	+	20 that the total exemption granted to any such corporation shall
	81	+	21 not exceed $75,000, taking into consideration its real and
	82	+	22 personal property and the value of its shares of capital
	83	+	23 stock;
	84	+	24 "(4) All property owned by the American Legion or by
	85	+	25 Veterans of Foreign Wars or by the Disabled American Veterans,
	86	+	26 or any post thereof; provided, that such property is used and
	87	+	27 occupied exclusively by said organization;
	88	+	Page 3 1 "(5) All the property of literary and scientific
	89	+	2 institutions and literary societies, when employed or used in
	90	+	3 the regular business of such institutions;
	91	+	4 "(6) The libraries of ministers of the gospel, all
	92	+	5 libraries other than those of a professional character and all
	93	+	6 religious books kept for sale by ministers of the gospel and
	94	+	7 colporteurs;
	95	+	8 "(7) The property of deaf mutes and insane persons
	96	+	9 to the extent of $3,000 and the property of blind persons to
	97	+	10 the extent of $12,000;
	98	+	11 "(8) All family portraits;
	99	+	12 "(9) All cotton, livestock or agricultural products
	100	+	13 which have been raised or grown in the State of Alabama and
	101	+	14 which shall remain in the hands of the producer thereof, or
	102	+	15 his landlord, or in the hands of a cooperative association for
	103	+	16 all time, and for a period of one year in the hands of the
	104	+	17 purchaser or the manufacturer;
	105	+	18 "(10) All cotton, wherever grown, stored in licensed
	106	+	19 warehouses in the State of Alabama for a period not exceeding
	107	+	20 12 months;
	108	+	21 "(11) Provisions and supplies on hand for the
	109	+	22 current year for the use of the family and the making of
	110	+	23 crops; all wearing apparel; farming tools; tools and
	111	+	24 implements of mechanics to the value of $200; all livestock,
	112	+	25 including mules, studs, jacks and jennets, cattle, horses,
	113	+	26 cows, calves, hogs, sheep and goats; household and kitchen
	114	+	27 furniture and one sewing machine;
	115	+	Page 4 1 "(12) No license or taxation of any character,
	116	+	2 except franchise taxes provided by Section 229 of the
	117	+	3 Constitution of the State of Alabama, shall be collected or
	118	+	4 required to be paid to the state or any county or municipality
	119	+	5 therein by any state or county fair, agricultural association,
	120	+	6 stock, kennel or poultry show. Athletic stadiums owned and
	121	+	7 controlled by universities, schools or colleges and which are
	122	+	8 used exclusively for the purpose of promoting intercollegiate
	123	+	9 or interschool athletics; provided, that the revenue received
	124	+	10 from athletic stadiums, when admission is charged, shall be
	125	+	11 used for the benefit of athletic associations of such
	126	+	12 universities, colleges or schools. Nothing contained in this
	127	+	13 subdivision shall be construed to prohibit any municipality,
	128	+	14 county or state from imposing any license tax upon or for the
	129	+	15 privilege of engaging in the business of supplying services
	130	+	16 for hire or reward or selling commodities other than
	131	+	17 livestock, farm products or farm implements or conducting or
	132	+	18 operating devices or games of skill or amusements or other
	133	+	19 games or devices, or conducting or operating shows, displays
	134	+	20 or exhibits other than shows, displays or exhibits of
	135	+	21 agricultural implements, farm products, livestock and athletic
	136	+	22 prowess;
	137	+	23 "(13) All material, including without limitation
	138	+	24 coke, to be compounded or further manufactured, when stocked
	139	+	25 at any plant or furnace for manufacturing purposes in Alabama;
	140	+	26 "(14) All articles manufactured in Alabama,
	141	+	27 including pig iron, in the hands of the producer or
	142	+	Page 5 1 manufacturer thereof, for 12 months after its production or
	143	+	2 manufacture;
	144	+	3 "(15) All property, both real and personal, owned by
	145	+	4 any unit or organization of the Alabama National Guard
	146	+	5 officially recognized as such by the federal government and
	147	+	6 organized and maintained by the state, and all property owned
	148	+	7 by shares and used exclusively by and kept exclusively in the
	149	+	8 possession of any such unit or organization of the Alabama
	150	+	9 National Guard, the annual rent or hire of which is not in
	151	+	10 excess of the annual state, county and municipal taxes on said
	152	+	11 property shall be exempt from taxation by the state, and the
	153	+	12 county and municipality in which the same may be situated;
	154	+	13 "(16) All poultry;
	155	+	14 "(17) The property of all incompetent veterans to
	156	+	15 the value of $3,000;
	157	+	16 "(18) The following items of personal property when
	158	+	17 owned by individuals for personal use in the home or usually
	159	+	18 kept at the home of the owner and not carried as stocks of
	160	+	19 merchandise, namely: Libraries; phonographs; pianos and other
	161	+	20 musical instruments; paintings; precious stones, jewelry,
	162	+	21 plate silverware, ornaments and articles of taste; watches and
	163	+	22 clocks; wagons, buggies, bicycles, guns, pistols, canes, golf
	164	+	23 sticks, golf bags and sporting goods; money hoarded; radios;
	165	+	24 mechanical and electrical refrigerators; electrical
	166	+	25 appliances;
	167	+	26 "(19) All property owned by the Benevolent and
	168	+	27 Protective Order of Elks, Fraternal Order of Police, Fraternal
	169	+	Page 6 1 Order of Eagles or Loyal Order of Moose, or lodge thereof;
161	170		2 provided, that such property is used and occupied exclusively
162	171		3 by such organization;
163	172		4 "(20) All devices, facilities or structures, and all
164	173		5 identifiable components thereof or materials for use therein,
165	174		6 acquired or constructed primarily for the control, reduction
166	175		7 or elimination of air or water pollution;
167	176		8 "(21) Tobacco leaf stored in hogsheads;
168	177		9 "(22) All farm tractors, as that term is defined in
169	178		10 subdivision (19) of Section 32-1-1.1; and all farming
170	179		11 implements, as that term is used in subdivision (b)(5) of
171	180		12 Section 40-11-1, as amended, when used exclusively in
172	181		13 connection with agricultural property as defined in
173	182		14 subdivision (b)(3) of Section 40-8-1, as amended;
174	183		15 "(23) All grain bins used exclusively for the
175	184		16 purpose of storing, holding, drying, preserving, or otherwise
176	185		17 preparing a grain, as defined in Section 2-31-1, for market.
177	186		18 For purposes of this chapter, grain bin means a structure and
178	187		19 its component parts;
179	188		20 "(23) (24) All stocks of goods, wares and
180	189		21 merchandise described in subdivision (b)(4) of Section
181	190		22 40-11-1, as amended; and
182	191		23 "(24) (25) All aircraft, replacement parts,
183	192		24 components, systems, supplies and sundries affixed or used on
184	193		25 said aircraft, and ground support equipment and vehicles used
185		-	Page 7 HB400
186		-	1 by or for the aircraft, when used by a certificated or
187		-	2 licensed air carrier with a hub operation within this state,
188		-	3 for use in conducting intrastate, interstate or foreign
189		-	4 commerce for transporting people or property by air. For the
190		-	5 purpose of this subdivision, the words "hub operation within
191		-	6 this state" shall be construed to have all of the following
192		-	7 criteria:
193		-	8 "a. There originates from the location 15 or more
194		-	9 flight departures and five or more different first-stop
195		-	10 destinations five days per week for six or more months during
196		-	11 the calendar year; and
197		-	12 "b. Passengers and/or property are regularly
198		-	13 exchanged at the location between flights of the same or a
199		-	14 different certificated or licensed air carrier.
200		-	15 "(25) (26) All property described in Title 12 U.S.C.
201		-	16 §1701(Q), commonly known as HUD 202 property, is hereby exempt
202		-	17 from any and all ad valorem taxes.
203		-	18 "(26) (27) All vessels and equipment thereon, used
204		-	19 predominantly in the business of commercial shrimping by the
205		-	20 owners thereof."
206		-	21 Section 2. This act shall become effective
207		-	22 immediately following its passage and approval by the
208		-	23 Governor, or its otherwise becoming law.
209		-	Page 8 HB400
210		-	1
211		-	2
212		-	3
213		-	4
214		-	Speaker of the House of Representatives
215		-
216		-	5
217		-	6 President and Presiding Officer of the Senate
218		-	House of Representatives7
219		-	I hereby certify that the within Act originated in8
220		-	9 and was passed by the House 10-MAR-22.
221		-	10
222		-	11 Jeff Woodard
223		-	12 Clerk
224		-	13
225		-	14
226		-	15
227		-	Senate16 06-APR-22 Passed
228		-	17
229		-	Page 9
	194	+	26 by or for the aircraft, when used by a certificated or
	195	+	27 licensed air carrier with a hub operation within this state,
	196	+	Page 7 1 for use in conducting intrastate, interstate or foreign
	197	+	2 commerce for transporting people or property by air. For the
	198	+	3 purpose of this subdivision, the words "hub operation within
	199	+	4 this state" shall be construed to have all of the following
	200	+	5 criteria:
	201	+	6 "a. There originates from the location 15 or more
	202	+	7 flight departures and five or more different first-stop
	203	+	8 destinations five days per week for six or more months during
	204	+	9 the calendar year; and
	205	+	10 "b. Passengers and/or property are regularly
	206	+	11 exchanged at the location between flights of the same or a
	207	+	12 different certificated or licensed air carrier.
	208	+	13 "(25) (26) All property described in Title 12 U.S.C.
	209	+	14 §1701(Q), commonly known as HUD 202 property, is hereby exempt
	210	+	15 from any and all ad valorem taxes.
	211	+	16 "(26) (27) All vessels and equipment thereon, used
	212	+	17 predominantly in the business of commercial shrimping by the
	213	+	18 owners thereof."
	214	+	19 Section 2. This act shall become effective
	215	+	20 immediately following its passage and approval by the
	216	+	21 Governor, or its otherwise becoming law.
	217	+	Page 8