Alabama 2022 Regular Session

Alabama Senate Bill SB276 Compare Versions

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

Old	New	Differences
1	1	1 SB276
2	2	2 217862-1
3	3	3 By Senator Whatley
4	4	4 RFD: Finance and Taxation Education
5	5	5 First Read: 01-MAR-22
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7	7	Page 0 1 217862-1:n:02/17/2022:BY/tgw LSA2022-094F
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14	14	8 SYNOPSIS: Under current law, sales of automobiles,
15	15	9 motorcycles, trucks, truck trailers, or
16	16	10 semitrailers, excluding travel trailers or
17	17	11 housecars, that will be registered or titled
18	18	12 outside Alabama, that are exported or removed from
19	19	13 Alabama within 72 hours by the purchaser or the
20	20	14 purchaser's agent for first use outside Alabama,
21	21	15 are not subject to Alabama sales tax provided the
22	22	16 state sales tax laws of the state in which the
23	23	17 purchaser will title or register the vehicle allows
24	24	18 an Alabama resident to purchase a motor vehicle for
25	25	19 first titling and registering in Alabama without
26	26	20 the payment of tax.
27	27	21 This bill would remove the exclusion of
28	28	22 housecars and travel trailers from the 72-hour
29	29	23 drive-out provisions and provide that sales of
30	30	24 housecars, campers, and travel trailers that meet
31	31	25 those requirements are not subject to sales tax.
32	32	26 This bill would also require a purchaser to
33	33	27 provide documentation to the seller that the
34	34	Page 1 1 purchaser is not a resident of Alabama for a travel
35	35	2 trailer, camper, or housecar to qualify as a
36	36	3 vehicle that will be registered or titled outside
37	37	4 Alabama.
38	38	5
39	39	6 A BILL
40	40	7 TO BE ENTITLED
41	41	8 AN ACT
42	42	9
43	43	10 To amend Sections 40-23-2, Code of Alabama 1975;
44	44	11 relating to the taxation of sales of automobiles, motorcycles,
45	45	12 trucks, truck trailers, travel trailers, campers, housecars,
46	46	13 and semitrailers that will be registered or titled outside of
47	47	14 Alabama and are exported or removed from Alabama within 72
48	48	15 hours by the purchaser or purchaser's agent for first use
49	49	16 outside Alabama.
50	50	17 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
51	51	18 Section 1. Section 40-23-2, Code of Alabama 1975, is
52	52	19 amended to read as follows:
53	53	20 "§40-23-2.
54	54	21 "There is levied, in addition to all other taxes of
55	55	22 every kind now imposed by law, and shall be collected as
56	56	23 herein provided, a privilege or license tax against the person
57	57	24 on account of the business activities and in the amount to be
58	58	25 determined by the application of rates against gross sales, or
59	59	26 gross receipts, as the case may be, as follows:
60	60	Page 2 1 "(1) Upon every person, firm, or corporation,
61	61	2 (including the State of Alabama and its Alcoholic Beverage
62	62	3 Control Board in the sale of alcoholic beverages of all kinds,
63	63	4 the University of Alabama, Auburn University, and all other
64	64	5 institutions of higher learning in the state, whether the
65	65	6 institutions be denominational, state, county, or municipal
66	66	7 institutions, any association or other agency or
67	67	8 instrumentality of the institutions) engaged or continuing
68	68	9 within this state, in the business of selling at retail any
69	69	10 tangible personal property whatsoever, including merchandise
70	70	11 and commodities of every kind and character, (not including,
71	71	12 however, bonds or other evidences of debts or stocks, nor
72	72	13 sales of material and supplies to any person for use in
73	73	14 fulfilling a contract for the painting, repair, or
74	74	15 reconditioning of vessels, barges, ships, other watercraft,
75	75	16 and commercial fishing vessels of over five tons load
76	76	17 displacement as registered with the U.S. Coast Guard and
77	77	18 licensed by the State of Alabama Department of Conservation
78	78	19 and Natural Resources), an amount equal to four percent of the
79	79	20 gross proceeds of sales of the business except where a
80	80	21 different amount is expressly provided herein. Provided,
81	81	22 however, that any person engaging or continuing in business as
82	82	23 a retailer and wholesaler or jobber shall pay the tax required
83	83	24 on the gross proceeds of retail sales of the business at the
84	84	25 rates specified, when his or her books are kept so as to show
85	85	26 separately the gross proceeds of sales of each business, and
86	86	Page 3 1 when his or her books are not kept he or she shall pay the tax
87	87	2 as a retailer, on the gross sales of the business.
88	88	3 "Where any used part including tires of an
89	89	4 automotive vehicle or a truck trailer, semitrailer, or house
90	90	5 trailer is taken in trade, or in a series of trades, as a
91	91	6 credit or part payment on the sale of a new or rebuilt part or
92	92	7 tire, the tax levied herein shall be paid on the net
93	93	8 difference, that is, the price of the new or used part or tire
94	94	9 sold less the credit for the used part or tire taken in trade,
95	95	10 provided, however, this provision shall not be construed to
96	96	11 include batteries.
97	97	12 "(2) Upon every person, firm, or corporation engaged
98	98	13 or continuing within this state in the business of conducting
99	99	14 or operating places of amusement or entertainment, billiard
100	100	15 and pool rooms, bowling alleys, amusement devices, musical
101	101	16 devices, theaters, opera houses, moving picture shows,
102	102	17 vaudevilles, amusement parks, athletic contests, including
103	103	18 wrestling matches, prize fights, boxing and wrestling
104	104	19 exhibitions, football and baseball games, (including athletic
105	105	20 contests, conducted by or under the auspices of any
106	106	21 educational institution within this state, or any athletic
107	107	22 association thereof, or other association whether the
108	108	23 institution or association be a denominational, a state, or
109	109	24 county, or a municipal institution, or association or a state,
110	110	25 county, or city school, or other institution, association or
111	111	26 school), skating rinks, race tracks, golf courses, or any
112	112	27 other place at which any exhibition, display, amusement, or
113	113	Page 4 1 entertainment is offered to the public or place or places
114	114	2 where an admission fee is charged, including public bathing
115	115	3 places, public dance halls of every kind and description
116	116	4 within the State of Alabama, an amount equal to four percent
117	117	5 of the gross receipts of any such business. Provided, however,
118	118	6 notwithstanding any language to the contrary in the prior
119	119	7 portion of this subdivision, the tax provisions so specified
120	120	8 shall not apply to any athletic event conducted by a public or
121	121	9 nonpublic primary or secondary school or any athletic event
122	122	10 conducted by or under the auspices of the Alabama High School
123	123	11 Athletic Association. The tax amount which would have been
124	124	12 collected pursuant to this subdivision shall continue to be
125	125	13 collected by the public or nonpublic primary or secondary
126	126	14 school, but shall be retained by the school which collected it
127	127	15 and shall be used by the school for school purposes.
128	128	16 "(3) Upon every person, firm, or corporation engaged
129	129	17 or continuing within this state in the business of selling at
130	130	18 retail machines used in mining, quarrying, compounding,
131	131	19 processing, and manufacturing of tangible personal property an
132	132	20 amount equal to one and one-half percent of the gross proceeds
133	133	21 of the sale of the machines. The term "machine," as herein
134	134	22 used, shall include machinery which is used for mining,
135	135	23 quarrying, compounding, processing, or manufacturing tangible
136	136	24 personal property, and the parts of the machines, attachments,
137	137	25 and replacements therefor, which are made or manufactured for
138	138	26 use on or in the operation of the machines and which are
139	139	Page 5 1 necessary to the operation of the machines and are customarily
140	140	2 so used.
141	141	3 "(4) Upon every person, firm, or corporation engaged
142	142	4 or continuing within this state in the business of selling at
143	143	5 retail any automotive vehicle or truck trailer, semitrailer,
144	144	6 or house trailer, or mobile home set-up materials and supplies
145	145	7 including but not limited to steps, blocks, anchoring, cable
146	146	8 pipes, and any other materials pertaining thereto an amount
147	147	9 equal to two percent of the gross proceeds of sale of the
148	148	10 automotive vehicle or truck trailer, semitrailer, or house
149	149	11 trailer, or mobile home set-up materials and supplies
150	150	12 provided, however, where a person subject to the tax provided
151	151	13 for in this subdivision withdraws from his or her stock in
152	152	14 trade any automotive vehicle or truck trailer, semitrailer, or
153	153	15 house trailer for use by him or her or by his or her employee
154	154	16 or agent in the operation of the business, there shall be
155	155	17 paid, in lieu of the tax levied herein, a fee of five dollars
156	156	18 ($5) per year or part thereof during which the automotive
157	157	19 vehicle, truck trailer, semitrailer, or house trailer shall
158	158	20 remain the property of the person. Each year or part thereof
159	159	21 shall begin with the day or anniversary date, as the case may
160	160	22 be, of such withdrawal and shall run for the 12 succeeding
161	161	23 months or part thereof during which the automotive vehicle,
162	162	24 truck trailer, semitrailer, or house trailer shall remain the
163	163	25 property of the person.
164	164	26 "Where any used automotive vehicle or truck trailer,
165	165	27 semitrailer, or house trailer is taken in trade or in a series
166	166	Page 6 1 of trades, as a credit or part payment on the sale of a new or
167	167	2 used vehicle, the tax levied herein shall be paid on the net
168	168	3 difference, that is, the price of the new or used vehicle sold
169	169	4 less the credit for the used vehicle taken in trade.
170	170	5 "Sales of automobiles, motorcycles, trucks, truck
171	171	6 trailers, travel trailers, campers, housecars, or
172	172	7 semitrailers, excluding travel trailers or housecars as
173	173	8 defined in Section 40-12-240, that will be registered or
174	174	9 titled outside Alabama, that are exported or removed from
175	175	10 Alabama within 72 hours by the purchaser or his or her agent
176	176	11 for first use outside Alabama are subject to Alabama sales tax
177	177	12 in an amount equal to only the state automotive sales tax
178	178	13 rate, unless the sales tax laws of the state in which the
179	179	14 purchaser will title or register the vehicle allows an Alabama
180	180	15 resident to purchase a motor vehicle for first titling and
181	181	16 registering in Alabama without the payment of tax to that
182	182	17 state. However, in no case shall the amount of Alabama state
183	183	18 sales tax due on a motor vehicle that will be registered or
184	184	19 titled for use in another state exceed the amount of sales tax
185	185	20 that would otherwise have been due in the state where the
186	186	21 vehicle will be registered or titled for first use. In order
187	187	22 to qualify as a travel trailer, camper, or housecar that will
188	188	23 be registered or titled for use in another state, the
189	189	24 purchaser must provide documentation to the seller that the
190	190	25 purchaser is not a resident of Alabama as required by the
191	191	26 Department of Revenue. No such proof is required in the sale
192	192	27 of an automobile, motorcycle, truck, truck trailer, or
193	193	Page 7 1 semitrailer, excluding a travel trailer, camper, or housecar.
194	194	2 The tax collected under this export provision shall be Alabama
195	195	3 sales tax and shall exclude county and municipal sales tax. On
196	196	4 January 1, 2016, and each January 1 thereafter, the Alabama
197	197	5 Department of Revenue shall publish to the state's website a
198	198	6 list of states that do not allow drive out provisions to
199	199	7 Alabama residents. Should the list, required by this
200	200	8 subsection and relied upon by the taxpayer, be incorrect, the
201	201	9 taxpayer shall be relieved from the liability concerning the
202	202	10 miscollection of the state automotive sales tax. Sales of all
203	203	11 other vehicles such as mobile homes, motor bikes, all terrain
204	204	12 vehicles, and boats do not qualify for the export exemption
205	205	13 provision and are taxable unless the dealer can provide
206	206	14 factual evidence that the vehicle was delivered outside of
207	207	15 Alabama or to a common carrier for transportation outside
208	208	16 Alabama. In order for the sale to be exempt from Alabama tax,
209	209	17 the information relative to the exempt sale shall be
210	210	18 documented on forms approved by the Revenue Department.
211	211	19 "Of the total $.02 tax on each dollar of sale
212	212	20 provided hereunder, 58 percent of the total tax generated by
213	213	21 this subdivision (4) shall be deposited to the credit of the
214	214	22 Education Trust Fund; and 42 percent of the total tax
215	215	23 generated by this subdivision (4) shall be deposited to the
216	216	24 credit of the State General Fund.
217	217	25 "(5) Upon every person, firm, or corporation engaged
218	218	26 or continuing within this state in the business of selling
219	219	27 through coin-operated dispensing machines, food and food
220	220	Page 8 1 products for human consumption, not including beverages other
221	221	2 than coffee, milk, milk products, and substitutes therefor,
222	222	3 there is levied a tax equal to three percent of the cost of
223	223	4 the food, food products, and beverages sold through the
224	224	5 machines, which cost for the purpose of this subdivision shall
225	225	6 be the gross proceeds of sales of the business."
226	226	7 Section 2. This act shall become effective on the
227	227	8 first day of the third month following its passage and
228	228	9 approval by the Governor, or its otherwise becoming law.
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