Alabama 2022 Regular Session

Alabama Senate Bill SB275 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 SB275
2	2	2 218011-2
3	3	3 By Senator Stutts
4	4	4 RFD: Agriculture, Conservation and Forestry
5	5	5 First Read: 01-MAR-22
6	6
7	7	Page 0 1 218011-2:n:02/23/2022:KBB/bm LSA2022-796R1
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10	10	4
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13	13	7
14	14	8 SYNOPSIS: Under existing law, ad valorem taxation
15	15	9 applies to all real property in the state unless
16	16	10 expressly exempted by law.
17	17	11 This bill would provide that all grain bin
18	18	12 structures and parts used for preparing a grain for
19	19	13 market would be exempt from ad valorem taxation.
20	20	14
21	21	15 A BILL
22	22	16 TO BE ENTITLED
23	23	17 AN ACT
24	24	18
25	25	19 Relating to exemptions from ad valorem taxation; to
26	26	20 amend Section 40-9-1, Code of Alabama 1975; and to exempt
27	27	21 grain bins from ad valorem taxation.
28	28	22 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
29	29	23 Section 1. Section 40-9-1, Code of Alabama 1975, is
30	30	24 amended to read as follows:
31	31	25 "§40-9-1.
32	32	26 "The following property and persons shall be exempt
33	33	27 from ad valorem taxation and none other:
34	34	Page 1 1 "(1) All bonds of the United States and this state
35	35	2 and all county and municipal bonds issued by counties and
36	36	3 municipalities in this state, all property, real and personal,
37	37	4 of the United States and this state and of county and
38	38	5 municipal corporations in this state; all cemeteries, all
39	39	6 property, real and personal, used exclusively for religious
40	40	7 worship, for schools or for purposes purely charitable;
41	41	8 provided, that property, real or personal, owned by any
42	42	9 educational, religious or charitable institution, society or
43	43	10 corporation let for rent or hire or for use for business
44	44	11 purposes shall not be exempt from taxation, notwithstanding
45	45	12 that the income from such property shall be used exclusively
46	46	13 for education, religious or charitable purposes; all
47	47	14 mortgages, together with the notes, debts and credits secured
48	48	15 thereby on real and personal property situated in this state,
49	49	16 which mortgages have been filed for record and the privilege
50	50	17 tax paid thereon; all security agreements and security
51	51	18 interests under the Uniform Commercial Code, together with the
52	52	19 notes, debts and credits secured thereby; all money on deposit
53	53	20 in any bank or banking institution and all other solvent
54	54	21 credits; all warrants issued by county boards of education and
55	55	22 city boards of education for the purpose of erecting,
56	56	23 repairing, furnishing school buildings or for other school
57	57	24 purposes;
58	58	25 "(2) All property, real or personal, used
59	59	26 exclusively for hospital purposes, to the amount of $75,000,
60	60	27 where such hospitals maintain wards for charity patients or
61	61	Page 2 1 give treatment to such patients; provided, that the treatment
62	62	2 of charity patients constitutes at least 15 percent of the
63	63	3 business of such hospitals; provided further, that such
64	64	4 hospital need not be assessed for taxation if the owner or
65	65	5 manager shall file with the county tax assessor wherein such
66	66	6 hospital is located within the time allowed for assessing such
67	67	7 property for taxation a certificate that such hospital has
68	68	8 done 15 percent charity work in the preceding tax year; and
69	69	9 further provided, that such hospital through its owner or
70	70	10 manager shall have until the expiration of the preceding tax
71	71	11 year to class its work and ascertain whether or not such
72	72	12 hospital has done 15 percent of its treatment of patients as
73	73	13 charity work;
74	74	14 "(3) The shares of the capital stock of any
75	75	15 corporation owning and operating a hospital, to the extent of
76	76	16 $75,000 in value; provided, that said corporation maintains
77	77	17 wards for charity patients and gives treatment to such
78	78	18 patients, which treatment constitutes at least 15 percent of
79	79	19 the business of the hospital of said corporation; provided,
80	80	20 that the total exemption granted to any such corporation shall
81	81	21 not exceed $75,000, taking into consideration its real and
82	82	22 personal property and the value of its shares of capital
83	83	23 stock;
84	84	24 "(4) All property owned by the American Legion or by
85	85	25 Veterans of Foreign Wars or by the Disabled American Veterans,
86	86	26 or any post thereof; provided, that such property is used and
87	87	27 occupied exclusively by said organization;
88	88	Page 3 1 "(5) All the property of literary and scientific
89	89	2 institutions and literary societies, when employed or used in
90	90	3 the regular business of such institutions;
91	91	4 "(6) The libraries of ministers of the gospel, all
92	92	5 libraries other than those of a professional character and all
93	93	6 religious books kept for sale by ministers of the gospel and
94	94	7 colporteurs;
95	95	8 "(7) The property of deaf mutes and insane persons
96	96	9 to the extent of $3,000 and the property of blind persons to
97	97	10 the extent of $12,000;
98	98	11 "(8) All family portraits;
99	99	12 "(9) All cotton, livestock or agricultural products
100	100	13 which have been raised or grown in the State of Alabama and
101	101	14 which shall remain in the hands of the producer thereof, or
102	102	15 his landlord, or in the hands of a cooperative association for
103	103	16 all time, and for a period of one year in the hands of the
104	104	17 purchaser or the manufacturer;
105	105	18 "(10) All cotton, wherever grown, stored in licensed
106	106	19 warehouses in the State of Alabama for a period not exceeding
107	107	20 12 months;
108	108	21 "(11) Provisions and supplies on hand for the
109	109	22 current year for the use of the family and the making of
110	110	23 crops; all wearing apparel; farming tools; tools and
111	111	24 implements of mechanics to the value of $200; all livestock,
112	112	25 including mules, studs, jacks and jennets, cattle, horses,
113	113	26 cows, calves, hogs, sheep and goats; household and kitchen
114	114	27 furniture and one sewing machine;
115	115	Page 4 1 "(12) No license or taxation of any character,
116	116	2 except franchise taxes provided by Section 229 of the
117	117	3 Constitution of the State of Alabama, shall be collected or
118	118	4 required to be paid to the state or any county or municipality
119	119	5 therein by any state or county fair, agricultural association,
120	120	6 stock, kennel or poultry show. Athletic stadiums owned and
121	121	7 controlled by universities, schools or colleges and which are
122	122	8 used exclusively for the purpose of promoting intercollegiate
123	123	9 or interschool athletics; provided, that the revenue received
124	124	10 from athletic stadiums, when admission is charged, shall be
125	125	11 used for the benefit of athletic associations of such
126	126	12 universities, colleges or schools. Nothing contained in this
127	127	13 subdivision shall be construed to prohibit any municipality,
128	128	14 county or state from imposing any license tax upon or for the
129	129	15 privilege of engaging in the business of supplying services
130	130	16 for hire or reward or selling commodities other than
131	131	17 livestock, farm products or farm implements or conducting or
132	132	18 operating devices or games of skill or amusements or other
133	133	19 games or devices, or conducting or operating shows, displays
134	134	20 or exhibits other than shows, displays or exhibits of
135	135	21 agricultural implements, farm products, livestock and athletic
136	136	22 prowess;
137	137	23 "(13) All material, including without limitation
138	138	24 coke, to be compounded or further manufactured, when stocked
139	139	25 at any plant or furnace for manufacturing purposes in Alabama;
140	140	26 "(14) All articles manufactured in Alabama,
141	141	27 including pig iron, in the hands of the producer or
142	142	Page 5 1 manufacturer thereof, for 12 months after its production or
143	143	2 manufacture;
144	144	3 "(15) All property, both real and personal, owned by
145	145	4 any unit or organization of the Alabama National Guard
146	146	5 officially recognized as such by the federal government and
147	147	6 organized and maintained by the state, and all property owned
148	148	7 by shares and used exclusively by and kept exclusively in the
149	149	8 possession of any such unit or organization of the Alabama
150	150	9 National Guard, the annual rent or hire of which is not in
151	151	10 excess of the annual state, county and municipal taxes on said
152	152	11 property shall be exempt from taxation by the state, and the
153	153	12 county and municipality in which the same may be situated;
154	154	13 "(16) All poultry;
155	155	14 "(17) The property of all incompetent veterans to
156	156	15 the value of $3,000;
157	157	16 "(18) The following items of personal property when
158	158	17 owned by individuals for personal use in the home or usually
159	159	18 kept at the home of the owner and not carried as stocks of
160	160	19 merchandise, namely: Libraries; phonographs; pianos and other
161	161	20 musical instruments; paintings; precious stones, jewelry,
162	162	21 plate silverware, ornaments and articles of taste; watches and
163	163	22 clocks; wagons, buggies, bicycles, guns, pistols, canes, golf
164	164	23 sticks, golf bags and sporting goods; money hoarded; radios;
165	165	24 mechanical and electrical refrigerators; electrical
166	166	25 appliances;
167	167	26 "(19) All property owned by the Benevolent and
168	168	27 Protective Order of Elks, Fraternal Order of Police, Fraternal
169	169	Page 6 1 Order of Eagles or Loyal Order of Moose, or lodge thereof;
170	170	2 provided, that such property is used and occupied exclusively
171	171	3 by such organization;
172	172	4 "(20) All devices, facilities or structures, and all
173	173	5 identifiable components thereof or materials for use therein,
174	174	6 acquired or constructed primarily for the control, reduction
175	175	7 or elimination of air or water pollution;
176	176	8 "(21) Tobacco leaf stored in hogsheads;
177	177	9 "(22) All farm tractors, as that term is defined in
178	178	10 subdivision (19) of Section 32-1-1.1; and all farming
179	179	11 implements, as that term is used in subdivision (b)(5) of
180	180	12 Section 40-11-1, as amended, when used exclusively in
181	181	13 connection with agricultural property as defined in
182	182	14 subdivision (b)(3) of Section 40-8-1, as amended;
183	183	15 "(23) All grain bins used exclusively for the
184	184	16 purpose of storing, holding, drying, preserving, or otherwise
185	185	17 preparing a grain, as defined in Section 2-31-1, for market.
186	186	18 For purposes of this chapter, grain bin means a structure and
187	187	19 its component parts;
188	188	20 "(23) (24) All stocks of goods, wares and
189	189	21 merchandise described in subdivision (b)(4) of Section
190	190	22 40-11-1, as amended; and
191	191	23 "(24) (25) All aircraft, replacement parts,
192	192	24 components, systems, supplies and sundries affixed or used on
193	193	25 said aircraft, and ground support equipment and vehicles used
194	194	26 by or for the aircraft, when used by a certificated or
195	195	27 licensed air carrier with a hub operation within this state,
196	196	Page 7 1 for use in conducting intrastate, interstate or foreign
197	197	2 commerce for transporting people or property by air. For the
198	198	3 purpose of this subdivision, the words "hub operation within
199	199	4 this state" shall be construed to have all of the following
200	200	5 criteria:
201	201	6 "a. There originates from the location 15 or more
202	202	7 flight departures and five or more different first-stop
203	203	8 destinations five days per week for six or more months during
204	204	9 the calendar year; and
205	205	10 "b. Passengers and/or property are regularly
206	206	11 exchanged at the location between flights of the same or a
207	207	12 different certificated or licensed air carrier.
208	208	13 "(25) (26) All property described in Title 12 U.S.C.
209	209	14 §1701(Q), commonly known as HUD 202 property, is hereby exempt
210	210	15 from any and all ad valorem taxes.
211	211	16 "(26) (27) All vessels and equipment thereon, used
212	212	17 predominantly in the business of commercial shrimping by the
213	213	18 owners thereof."
214	214	19 Section 2. This act shall become effective
215	215	20 immediately following its passage and approval by the
216	216	21 Governor, or its otherwise becoming law.
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