Alabama Senate Bill SB239

Alabama 2022 Regular Session

• Introduced: 2/22/22
• Refer: 2/22/22

Caption

Taxation, Long Ranch, exempt from state, county and local ad valorem tax and municipal sales and use tax

Impact

If enacted, this legislation would significantly affect the tax liabilities of Long Ranch, ensuring that its operations proceed without the financial constraints imposed by ad valorem property taxes and sales taxes. This could enhance the nonprofit's capacity to serve its mission effectively within the state, potentially increasing its contributions to the community. However, the bill may also raise questions about equity in tax policy, as exempting a specific nonprofit from taxes could set a precedent for other organizations seeking similar treatment.

Summary

SB239 proposes to exempt all property owned and used by Long Ranch, a domestic nonprofit corporation, from any state, county, and local ad valorem taxes. Additionally, it seeks to relieve Long Ranch from any state, county, and municipal sales and use taxes. This bill aims to provide financial relief to Long Ranch, allowing it to allocate more resources towards its operational activities and community services without the burden of taxes on property and sales.

Contention

While the bill's intentions are likely to be well-received by supporters of Long Ranch, it could face scrutiny from those who believe that extending tax exemptions to specific nonprofits may lead to unfair tax advantages and could influence the overall tax revenue for local governments. Critics might argue that such exemptions could shift the tax burden to other taxpayers or municipalities, thereby creating divisions around tax fairness and accountability in public finance.