Alabama 2023 Regular Session

Alabama House Bill HB120 Compare Versions

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

Old	New	Differences
1	1	HB120INTRODUCED
2	2	Page 0
3	3	UT0NDG-1
4	4	By Representative Shedd
5	5	RFD: Ways and Means Education
6	6	First Read: 21-Mar-23
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11	11	5 UT0NDG-1 03/03/2023 JRF (F)JRF 2023-687
12	12	Page 1
13	13	SYNOPSIS:
14	14	Under existing law, the state imposes sales or
15	15	use taxes upon the purchase of certain items. Counties
16	16	and municipalities impose additional sales and use
17	17	taxes. The purchase of certain items are exempt from
18	18	these taxes.
19	19	This bill would establish the Alabama Broadband
20	20	Investment Maximization Act to exempt the purchase of
21	21	broadband equipment and supplies from sales and use
22	22	tax.
23	23	A BILL
24	24	TO BE ENTITLED
25	25	AN ACT
26	26	Relating to sales and use tax; to establish the Alabama
27	27	Broadband Investment Maximization Act; to amend Section
28	28	40-23-4, Code of Alabama 1975, to exempt the purchase of
29	29	broadband equipment and supplies from sales and use tax.
30	30	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
31	31	Section 1. This act shall be known and be cited as the
32	32	Alabama Broadband Investment Maximization Act.
33	33	Section 2. Section 40-23-4, Code of Alabama 1975, is
34	34	amended to read as follows:
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64	64	"§40-23-4
65	65	(a) There are exempted from the provisions of this
66	66	division and from the computation of the amount of the tax
67	67	levied, assessed, or payable under this division the
68	68	following:
69	69	(1) The gross proceeds of the sales of lubricating oil
70	70	and gasoline as defined in Sections 40-17-30 and 40-17-170 and
71	71	the gross proceeds from those sales of lubricating oil
72	72	destined for out-of-state use which are transacted in a manner
73	73	whereby an out-of-state purchaser takes delivery of such oil
74	74	at a distributor's plant within this state and transports it
75	75	out-of-state, which are otherwise taxed.
76	76	(2) The gross proceeds of the sale, or sales, of
77	77	fertilizer when used for agricultural purposes. The word
78	78	"fertilizer" shall not be construed to include cottonseed
79	79	meal, when not in combination with other materials.
80	80	(3) The gross proceeds of the sale, or sales, of seeds
81	81	for planting purposes and baby chicks and poults. Nothing
82	82	herein shall be construed to exempt or exclude from the
83	83	computation of the tax levied, assessed, or payable, the gross
84	84	proceeds of the sale or sales of plants, seedlings, nursery
85	85	stock, or floral products.
86	86	(4) The gross proceeds of sales of insecticides and
87	87	fungicides when used for agricultural purposes or when used by
88	88	persons properly permitted by the Department of Agriculture
89	89	and Industries or any applicable local or state governmental
90	90	authority for structural pest control work and feed for
91	91	livestock and poultry, but not including prepared food for
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121	121	dogs and cats.
122	122	(5) The gross proceeds of sales of all livestock by
123	123	whomsoever sold, and also the gross proceeds of poultry and
124	124	other products of the farm, dairy, grove, or garden, when in
125	125	the original state of production or condition of preparation
126	126	for sale, when such sale or sales are made by the producer or
127	127	members of the producer's immediate family or for the producer
128	128	by those employed by the producer to assist in the production
129	129	thereof. Nothing herein shall be construed to exempt or
130	130	exclude from the measure or computation of the tax levied,
131	131	assessed, or payable hereunder, the gross proceeds of sales of
132	132	poultry or poultry products when not products of the farm.
133	133	(6) Cottonseed meal exchanged for cottonseed at or by
134	134	cotton gins.
135	135	(7) The gross receipts from the business on which, or
136	136	for engaging in which, a license or privilege tax is levied by
137	137	or under Sections 40-21-50, 40-21-53, and 40-21-56 through
138	138	40-21-60; provided, that nothing contained in this subdivision
139	139	shall be construed to exempt or relieve the person or persons
140	140	operating the business enumerated in these sections from the
141	141	payments of the tax levied by this division upon or measured
142	142	by the gross proceeds of sales of any tangible personal
143	143	property, except gas and water, the gross receipts from the
144	144	sale of which are the measure of the tax levied by Section
145	145	40-21-50, merchandise or other tangible commodities sold at
146	146	retail by the persons, unless the gross proceeds of sale
147	147	thereof are otherwise specifically exempted by this division.
148	148	(8) The gross proceeds of sales or gross receipts of or
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178	178	by any person, firm, or corporation, from the sale of
179	179	transportation, gas, water, or electricity, of the kinds and
180	180	natures, the rates and charges for which, when sold by public
181	181	utilities, are customarily fixed and determined by the Public
182	182	Service Commission of Alabama or like regulatory bodies.
183	183	(9) The gross proceeds of the sale, or sales of wood
184	184	residue, coal, or coke to manufacturers, electric power
185	185	companies, and transportation companies for use or consumption
186	186	in the production of by-products, or the generation of heat or
187	187	power used in manufacturing tangible personal property for
188	188	sale, for the generation of electric power or energy for use
189	189	in manufacturing tangible personal property for sale or for
190	190	resale, or for the generation of motive power for
191	191	transportation.
192	192	(10) The gross proceeds from the sale or sales of fuel
193	193	and supplies for use or consumption aboard ships, vessels,
194	194	towing vessels, or barges, or drilling ships, rigs or barges,
195	195	or seismic or geophysical vessels, or other watercraft (herein
196	196	for purposes of this exemption being referred to as "vessels")
197	197	engaged in foreign or international commerce or in interstate
198	198	commerce; provided, that nothing in this division shall be
199	199	construed to exempt or exclude from the measure of the tax
200	200	herein levied the gross proceeds of sale or sales of material
201	201	and supplies to any person for use in fulfilling a contract
202	202	for the painting, repair, or reconditioning of vessels,
203	203	barges, ships, other watercraft, and commercial fishing
204	204	vessels of over five tons load displacement as registered with
205	205	the U.S. Coast Guard and licensed by the State of Alabama
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235	235	Department of Conservation and Natural Resources.
236	236	For purposes of this subdivision, it shall be presumed
237	237	that vessels engaged in the transportation of cargo between
238	238	ports in the State of Alabama and ports in foreign countries
239	239	or possessions or territories of the United States or between
240	240	ports in the State of Alabama and ports in other states are
241	241	engaged in foreign or international commerce or interstate
242	242	commerce, as the case may be. For the purposes of this
243	243	subdivision, the engaging in foreign or international commerce
244	244	or interstate commerce shall not require that the vessel
245	245	involved deliver cargo to or receive cargo from a port in the
246	246	State of Alabama. For purposes of this subdivision, vessels
247	247	carrying passengers for hire, and no cargo, between ports in
248	248	the State of Alabama and ports in foreign countries or
249	249	possessions or territories of the United States or between
250	250	ports in the State of Alabama and ports in other states shall
251	251	be engaged in foreign or international commerce or interstate
252	252	commerce, as the case may be, if, and only if, both of the
253	253	following conditions are met: (i) The vessel in question is a
254	254	vessel of at least 100 gross tons; and (ii) the vessel in
255	255	question has an unexpired certificate of inspection issued by
256	256	the United States Coast Guard or by the proper authority of a
257	257	foreign country for a foreign vessel, which certificate is
258	258	recognized as acceptable under the laws of the United States.
259	259	Vessels that are engaged in foreign or international commerce
260	260	or interstate commerce shall be deemed for the purposes of
261	261	this subdivision to remain in such commerce while awaiting or
262	262	under repair in a port of the State of Alabama if the vessel
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292	292	returns after such repairs are completed to engaging in
293	293	foreign or international commerce or interstate commerce. For
294	294	purposes of this subdivision, seismic or geophysical vessels
295	295	which are engaged either in seismic or geophysical tests or
296	296	evaluations exclusively in offshore federal waters or in
297	297	traveling to or from conducting such tests or evaluations
298	298	shall be deemed to be engaged in international or foreign
299	299	commerce. For purposes of this subdivision, proof that fuel
300	300	and supplies purchased are for use or consumption aboard
301	301	vessels engaged in foreign or international commerce or in
302	302	interstate commerce may be accomplished by the merchant or
303	303	seller securing the duly signed certificate of the vessel
304	304	owner, operator, or captain or such person's respective agent,
305	305	on a form prescribed by the department, that the fuel and
306	306	supplies purchased are for use or consumption aboard vessels
307	307	engaged in foreign or international commerce or in interstate
308	308	commerce. Any person filing a false certificate shall be
309	309	guilty of a misdemeanor and upon conviction shall be fined not
310	310	less than twenty-five dollars ($25) nor more than five hundred
311	311	dollars ($500) for each offense. Each false certificate filed
312	312	shall constitute a separate offense. Any person filing a false
313	313	certificate shall be liable to the department for all taxes
314	314	imposed by this division upon the merchant or seller, together
315	315	with any interest or penalties thereon, by reason of the sale
316	316	or sales of fuel and supplies applicable to the false
317	317	certificate. If a merchant or seller of fuel and supplies
318	318	secures the certificate herein mentioned, properly completed,
319	319	the merchant or seller shall not be liable for the taxes
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349	349	imposed by this division, if the merchant or seller had no
350	350	knowledge that the certificate was false when it was filed
351	351	with the merchant or seller.
352	352	(11) The gross proceeds of sales of tangible personal
353	353	property to the State of Alabama, to the counties within the
354	354	state and to incorporated municipalities of the State of
355	355	Alabama.
356	356	(12) The gross proceeds of the sale or sales of
357	357	railroad cars, vessels, barges, and commercial fishing vessels
358	358	of over five tons load displacement as registered with the
359	359	U.S. Coast Guard and licensed by the State of Alabama
360	360	Department of Conservation and Natural Resources, when sold by
361	361	the manufacturers or builders thereof.
362	362	(13) The gross proceeds of the sale or sales of
363	363	materials, equipment, and machinery that, at any time, enter
364	364	into and become a component part of ships, vessels, towing
365	365	vessels or barges, or drilling ships, rigs or barges, or
366	366	seismic or geophysical vessels, other watercraft and
367	367	commercial fishing vessels of over five tons load displacement
368	368	as registered with the U.S. Coast Guard and licensed by the
369	369	State of Alabama Department of Conservation and Natural
370	370	Resources. Additionally, the gross proceeds from the sale or
371	371	sales of lifeboats, personal flotation devices, ring life
372	372	buoys, survival craft equipment, distress signals, EPIRB's,
373	373	fire extinguishers, injury placards, waste management plans
374	374	and logs, marine sanitation devices, navigation rulebooks,
375	375	navigation lights, sound signals, navigation day shapes, oil
376	376	placard cards, garbage placards, FCC SSL, stability
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406	406	instructions, first aid equipment, compasses, anchor and radar
407	407	reflectors, general alarm systems, bilge pumps, piping, and
408	408	discharge and electronic position fixing devices which are
409	409	used on the aforementioned watercraft.
410	410	(14) The gross proceeds of the sale or sales of fuel
411	411	oil purchased as fuel for kiln use in manufacturing
412	412	establishments.
413	413	(15) The gross proceeds of the sale or sales of
414	414	tangible personal property to county and city school boards
415	415	within the State of Alabama, independent school boards within
416	416	the State of Alabama, all educational institutions and
417	417	agencies of the State of Alabama, the counties within the
418	418	state, or any incorporated municipalities of the State of
419	419	Alabama, and private educational institutions operating within
420	420	the State of Alabama offering conventional and traditional
421	421	courses of study, such as those offered by public schools,
422	422	colleges, or universities within the State of Alabama; but not
423	423	including nurseries, day care centers, and home schools.
424	424	(16) The gross proceeds from the sale of all devices or
425	425	facilities, and all identifiable components thereof, or
426	426	materials for use therein, acquired primarily for the control,
427	427	reduction, or elimination of air or water pollution and the
428	428	gross proceeds from the sale of all identifiable components
429	429	of, or materials used or intended for use in, structures built
430	430	primarily for the control, reduction, or elimination of air
431	431	and water pollution.
432	432	(17) The gross proceeds of sales of tangible personal
433	433	property or the gross receipts of any business which the state
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463	463	is prohibited from taxing under the Constitution or laws of
464	464	the United States or under the Constitution of this state.
465	465	(18) When dealers or distributors use parts taken from
466	466	stocks owned by them in making repairs without charge for the
467	467	parts to the owner of the property repaired pursuant to
468	468	warranty agreements entered into by manufacturers, such use
469	469	shall not constitute taxable sales to the manufacturers,
470	470	distributors, or to the dealers, under this division or under
471	471	any county sales tax law.
472	472	(19) The gross proceeds received from the sale or
473	473	furnishing of food, including potato chips, candy, fruit and
474	474	similar items, soft drinks, tobacco products, and stationery
475	475	and other similar or related articles by hospital canteens
476	476	operated by Alabama state hospitals at Bryce Hospital and
477	477	Partlow State School for Mental Deficients at Tuscaloosa,
478	478	Alabama, and Searcy Hospital at Mt. Vernon, Alabama, for the
479	479	benefit of the patients therein.
480	480	(20) The gross proceeds of the sale, or sales, of
481	481	wrapping paper and other wrapping materials when used in
482	482	preparing poultry or poultry products for delivery, shipment,
483	483	or sale by the producer, processor, packer, or seller of such
484	484	poultry or poultry products, including pallets used in
485	485	shipping poultry and egg products, paper or other materials
486	486	used for lining boxes or other containers in which poultry or
487	487	poultry products are packed together with any other materials
488	488	placed in such containers for the delivery, shipment, or sale
489	489	of poultry or poultry products.
490	490	(21) The gross proceeds of the sales of all
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520	520	antibiotics, hormones and hormone preparations, drugs,
521	521	medicines or medications, vitamins, minerals or other
522	522	nutrients, and all other feed ingredients including
523	523	concentrates, supplements, and other feed ingredients when
524	524	such substances are used as ingredients in mixing and
525	525	preparing feed for fish raised to be sold on a commercial
526	526	basis, livestock, and poultry. Such exemption herein granted
527	527	shall be in addition to exemptions now provided by law for
528	528	feed for fish raised to be sold on a commercial basis,
529	529	livestock, and poultry, but not including prepared foods for
530	530	dogs or cats.
531	531	(22) The gross proceeds of the sale, or sales, of
532	532	seedlings, plants, shoots, and slips which are to be used for
533	533	planting vegetable gardens or truck farms and other
534	534	agricultural purposes. Nothing herein shall be construed to
535	535	exempt, or exclude from the computation of the tax levied,
536	536	assessed, or payable, the gross proceeds of the sale, or the
537	537	use of plants, seedlings, shoots, slips, nursery stock, and
538	538	floral products, except as hereinabove exempted.
539	539	(23) The gross proceeds of the sale, or sales, of
540	540	fabricated steel tube sections, when produced and fabricated
541	541	in this state by any person, firm, or corporation for any
542	542	vehicular tunnel for highway vehicular traffic, when sold by
543	543	the manufacturer or fabricator thereof, and also the gross
544	544	proceeds of the sale, or sales, of steel which enters into and
545	545	becomes a component part of such fabricated steel tube
546	546	sections of said tunnel.
547	547	(24) The gross proceeds from sales of admissions to any
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577	577	theatrical production, symphonic or other orchestral concert,
578	578	ballet, or opera production when the concert or production is
579	579	presented by any society, association, guild, or workshop
580	580	group, organized within this state, whose members or some of
581	581	whose members regularly and actively participate in the
582	582	concerts or productions for the purposes of providing a
583	583	creative outlet for the cultural and educational interests of
584	584	its members, and of promoting such interests for the
585	585	betterment of the community by presenting the productions to
586	586	the general public for an admission charge. The employment of
587	587	a paid director or conductor to assist in any such
588	588	presentation described in this subdivision shall not be
589	589	construed to prohibit the exemptions herein provided.
590	590	(25) The gross proceeds of sales of "herbicides" for
591	591	agricultural uses by whomsoever sold. The term herbicides, as
592	592	used in this subdivision, means any substance or mixture of
593	593	substances intended to prevent, destroy, repel, or retard the
594	594	growth of weeds or plants. The term includes preemergence
595	595	herbicides, postemergence herbicides, lay-by herbicides,
596	596	pasture herbicides, defoliant herbicides, and desiccant
597	597	herbicides.
598	598	(26) The Alabama Chapter of the Cystic Fibrosis
599	599	Research Foundation and the Jefferson Tuberculosis Sanatorium
600	600	and any of their departments or agencies, heretofore or
601	601	hereafter organized and existing in good faith in the State of
602	602	Alabama for purposes other than for pecuniary gain and not for
603	603	individual profit, shall be exempted from the computation of
604	604	the tax on the gross proceeds of all sales levied, assessed,
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634	634	or payable.
635	635	(27) The gross proceeds from the sale or sales of fuel
636	636	for use or consumption aboard commercial fishing vessels are
637	637	exempt from the computation of all sales taxes levied,
638	638	assessed, or payable under this division or levied under any
639	639	county or municipal sales tax law.
640	640	(28) The gross proceeds from the sales of rope, fishing
641	641	nets, tools, or any substitute used directly in the process of
642	642	commercial fishing by a holder of a commercial license issued
643	643	pursuant to Chapter 12 of Title 9.
644	644	(29) The gross proceeds of sales of sawdust, wood
645	645	shavings, wood chips, and other like materials sold for use as
646	646	chicken litter by poultry producers and poultry processors.
647	647	(30) The gross proceeds of the sales of all
648	648	antibiotics, hormones and hormone preparations, drugs,
649	649	medicines, and other medications including serums and
650	650	vaccines, vitamins, minerals, or other nutrients for use in
651	651	the production and growing of fish, livestock, and poultry by
652	652	whomsoever sold. The exemption herein granted shall be in
653	653	addition to the exemption provided by law for feed for fish,
654	654	livestock, and poultry, and in addition to the exemptions
655	655	provided by law for the above-enumerated substances and
656	656	products when mixed and used as ingredients in fish,
657	657	livestock, and poultry feed.
658	658	(31) The gross proceeds of the sale or sales of all
659	659	medicines prescribed by physicians for persons who are 65
660	660	years of age or older, and when the prescriptions are filled
661	661	by licensed pharmacists, shall be exempted under this division
662	662	309
663	663	310
664	664	311
665	665	312
666	666	313
667	667	314
668	668	315
669	669	316
670	670	317
671	671	318
672	672	319
673	673	320
674	674	321
675	675	322
676	676	323
677	677	324
678	678	325
679	679	326
680	680	327
681	681	328
682	682	329
683	683	330
684	684	331
685	685	332
686	686	333
687	687	334
688	688	335
689	689	336 HB120 INTRODUCEDHB120 INTRODUCED
690	690	Page 13
691	691	or under any county or municipal sales tax law. The exemption
692	692	provided in this section shall not apply to any medicine
693	693	purchased in any manner other than as is herein provided.
694	694	For the purposes of this subdivision, proof of age may
695	695	be accomplished by filing with the dispensing pharmacist any
696	696	one or more of the following documents:
697	697	a. The name and claim number as shown on a Medicare
698	698	card issued by the United States Social Security
699	699	Administration.
700	700	b. A certificate executed by any adult person having
701	701	knowledge of the fact that the person for whom the medicine
702	702	was prescribed is not less than 65 years of age.
703	703	c. An affidavit executed by any adult person having
704	704	knowledge of the fact that the person for whom the medicine
705	705	was prescribed is not less than 65 years of age.
706	706	For the purposes of this subdivision, any person filing
707	707	a false proof of age shall be guilty of a misdemeanor and upon
708	708	conviction thereof shall be punished by a fine of one hundred
709	709	dollars ($100).
710	710	(32) There shall be exempted from the tax levied by
711	711	this division the gross receipts of sales of grass sod of all
712	712	kinds and character when in the original state of production
713	713	or condition of preparation for sale, when the sales are made
714	714	by the producer or members of the producer's family or for the
715	715	producer by those employed by the producer to assist in the
716	716	production thereof; provided, that nothing herein shall be
717	717	construed to exempt sales of sod by a person engaged in the
718	718	business of selling plants, seedlings, nursery stock, or
719	719	337
720	720	338
721	721	339
722	722	340
723	723	341
724	724	342
725	725	343
726	726	344
727	727	345
728	728	346
729	729	347
730	730	348
731	731	349
732	732	350
733	733	351
734	734	352
735	735	353
736	736	354
737	737	355
738	738	356
739	739	357
740	740	358
741	741	359
742	742	360
743	743	361
744	744	362
745	745	363
746	746	364 HB120 INTRODUCEDHB120 INTRODUCED
747	747	Page 14
748	748	floral products.
749	749	(33) The gross receipts of sales of the following items
750	750	or materials that are necessary in the farm-to-market
751	751	production of tomatoes when such items or materials are used
752	752	by the producer or members of the producer's family or for the
753	753	producer by those employed by the producer to assist in the
754	754	production thereof: Twine for tying tomatoes, tomato stakes,
755	755	field boxes (wooden boxes used to take tomatoes from the
756	756	fields to shed), and tomato boxes used in shipments to
757	757	customers.
758	758	(34) The gross proceeds from the sale of liquefied
759	759	petroleum gas or natural gas sold to be used for agricultural
760	760	purposes.
761	761	(35) The gross receipts of sales from state nurseries
762	762	of forest tree seedlings.
763	763	(36) The gross receipts of sales of forest tree seed by
764	764	the state.
765	765	(37) The gross receipts of sales of Lespedeza bicolor
766	766	and other species of perennial plant seed and seedlings sold
767	767	for wildlife and game food production purposes by the state.
768	768	(38) The gross receipts of any aircraft manufactured,
769	769	sold, and delivered in this state if the aircraft are not
770	770	permanently domiciled in Alabama and are removed to another
771	771	state.
772	772	(39) The gross proceeds from the sale or sales of all
773	773	diesel fuel used for off-highway agricultural purposes.
774	774	(40) The gross proceeds from sales of admissions to any
775	775	sporting event that:
776	776	365
777	777	366
778	778	367
779	779	368
780	780	369
781	781	370
782	782	371
783	783	372
784	784	373
785	785	374
786	786	375
787	787	376
788	788	377
789	789	378
790	790	379
791	791	380
792	792	381
793	793	382
794	794	383
795	795	384
796	796	385
797	797	386
798	798	387
799	799	388
800	800	389
801	801	390
802	802	391
803	803	392 HB120 INTRODUCEDHB120 INTRODUCED
804	804	Page 15
805	805	a. Takes place in the State of Alabama on or after
806	806	January 1, 1984, regardless of when such sales occur; and
807	807	b. Is hosted by a not-for-profit corporation organized
808	808	and existing under the laws of the State of Alabama; and
809	809	c. Determines a national championship of a national
810	810	organization, including, but not limited to, the Professional
811	811	Golfers Association of America, the Tournament Players
812	812	Association, the United States Golf Association, the United
813	813	States Tennis Association, and the National Collegiate
814	814	Athletic Association; and
815	815	d. Has not been held in the State of Alabama on more
816	816	than one prior occasion, provided, however, that for such
817	817	purpose the Professional Golfers Association Championship, the
818	818	United States Open Golf Championship, the United States
819	819	Amateur Golf Championship of the United States Golf
820	820	Association, and the United States Open Tennis Championship
821	821	shall each be treated as a separate event.
822	822	(41) The gross receipts from the sale of any aircraft
823	823	and replacement parts, components, systems, supplies, and
824	824	sundries affixed or used on the aircraft and ground support
825	825	equipment and vehicles used by or for the aircraft to or by a
826	826	certificated or licensed air carrier with a hub operation
827	827	within this state, for use in conducting intrastate,
828	828	interstate, or foreign commerce for transporting people or
829	829	property by air. For the purpose of this subdivision, the
830	830	words "hub operation within this state" shall be construed to
831	831	have both of the following criteria:
832	832	a. There originates from the location 15 or more flight
833	833	393
834	834	394
835	835	395
836	836	396
837	837	397
838	838	398
839	839	399
840	840	400
841	841	401
842	842	402
843	843	403
844	844	404
845	845	405
846	846	406
847	847	407
848	848	408
849	849	409
850	850	410
851	851	411
852	852	412
853	853	413
854	854	414
855	855	415
856	856	416
857	857	417
858	858	418
859	859	419
860	860	420 HB120 INTRODUCEDHB120 INTRODUCED
861	861	Page 16
862	862	departures and five or more different first-stop destinations
863	863	five days per week for six or more months during the calendar
864	864	year.
865	865	b. Passengers or property or both are regularly
866	866	exchanged at the location between flights of the same or a
867	867	different certificated or licensed air carrier.
868	868	(42) The gross receipts from the sale of hot or cold
869	869	food and beverage products sold to or by a certificated or
870	870	licensed air carrier with a hub operation within this state,
871	871	for use in conducting intrastate, interstate, or foreign
872	872	commerce for transporting people or property by air. For the
873	873	purpose of this subdivision, the words "hub operation within
874	874	this state" shall be construed to have all of the following
875	875	criteria:
876	876	a. There originates from the location 15 or more flight
877	877	departures and five or more different first-stop destinations
878	878	five days per week for six or more months during the calendar
879	879	year.
880	880	b. Passengers or property or both are regularly
881	881	exchanged at the location between flights of the same or a
882	882	different certificated or licensed air carrier.
883	883	(43) The gross receipts from the sale of any aviation
884	884	jet fuel to a certificated or licensed air carrier purchased
885	885	for use in scheduled all-cargo operations being conducted on
886	886	international flights or in international commerce. For
887	887	purposes of this subdivision, the following words or terms
888	888	shall be defined and interpreted as follows:
889	889	a. Air Carrier. Any person, firm, corporation, or
890	890	421
891	891	422
892	892	423
893	893	424
894	894	425
895	895	426
896	896	427
897	897	428
898	898	429
899	899	430
900	900	431
901	901	432
902	902	433
903	903	434
904	904	435
905	905	436
906	906	437
907	907	438
908	908	439
909	909	440
910	910	441
911	911	442
912	912	443
913	913	444
914	914	445
915	915	446
916	916	447
917	917	448 HB120 INTRODUCEDHB120 INTRODUCED
918	918	Page 17
919	919	entity undertaking by any means, directly or indirectly, to
920	920	provide air transportation.
921	921	b. All-Cargo Operations. Any flight conducted by an air
922	922	carrier for compensation or hire other than a passenger
923	923	carrying flight, except passengers as specified in 14 C.F.R. §
924	924	121.583(a) or 14 C.F.R. § 135.85, as amended.
925	925	c. International Commerce. Any air carrier engaged in
926	926	all-cargo operations transporting goods for compensation or
927	927	hire on international flights.
928	928	d. International Flights. Any air carrier conducting
929	929	scheduled all-cargo operations between any point within the 50
930	930	states of the United States and the District of Columbia and
931	931	any point outside the 50 states of the United States and the
932	932	District of Columbia, including any interim stops within the
933	933	United States so long as the ultimate origin or destination of
934	934	the aircraft is outside the United States and the District of
935	935	Columbia.
936	936	(44) The gross proceeds of the sale or sales of the
937	937	following:
938	938	a. Drill pipe, casing, tubing, and other pipe used for
939	939	the exploration for or production of oil, gas, sulphur, or
940	940	other minerals in offshore federal waters.
941	941	b. Tangible personal property exclusively used for the
942	942	exploration for or production of oil, gas, sulphur, or other
943	943	minerals in offshore federal waters.
944	944	c. Fuel and supplies for use or consumption aboard
945	945	boats, ships, aircraft, and towing vessels when used
946	946	exclusively in transporting persons or property between a
947	947	449
948	948	450
949	949	451
950	950	452
951	951	453
952	952	454
953	953	455
954	954	456
955	955	457
956	956	458
957	957	459
958	958	460
959	959	461
960	960	462
961	961	463
962	962	464
963	963	465
964	964	466
965	965	467
966	966	468
967	967	469
968	968	470
969	969	471
970	970	472
971	971	473
972	972	474
973	973	475
974	974	476 HB120 INTRODUCEDHB120 INTRODUCED
975	975	Page 18
976	976	point in Alabama and a point or points in offshore federal
977	977	waters for the exploration for or production of oil, gas,
978	978	sulphur, or other minerals in offshore federal waters.
979	979	d. Drilling equipment that is used for the exploration
980	980	for or production of oil, gas, sulphur, or other minerals,
981	981	that is built for exclusive use outside this state and that
982	982	is, on completion, removed forthwith from this state.
983	983	The delivery of items exempted by this subdivision to
984	984	the purchaser or lessee in this state does not disqualify the
985	985	purchaser or lessee from the exemption if the property is
986	986	removed from the state by any means, including by the use of
987	987	the purchaser's or lessee's own facilities.
988	988	The shipment to a place in this state of equipment
989	989	exempted by this subdivision for further assembly or
990	990	fabrication does not disqualify the purchaser or lessee from
991	991	the exemption if on completion of the further assembly or
992	992	fabrication the equipment is removed forthwith from this
993	993	state. This subdivision applies to a sale that may occur when
994	994	the equipment exempted is further assembled or fabricated if
995	995	on completion the equipment is removed forthwith from this
996	996	state.
997	997	(45) The gross receipts derived from all bingo games
998	998	and operations that are conducted in compliance with validly
999	999	enacted legislation authorizing the conduct of such games and
1000	1000	operations, and which comply with the distribution
1001	1001	requirements of the applicable local laws; provided that the
1002	1002	exemption from sales taxation granted by this subdivision
1003	1003	shall apply only to gross receipts taxable under subdivision
1004	1004	477
1005	1005	478
1006	1006	479
1007	1007	480
1008	1008	481
1009	1009	482
1010	1010	483
1011	1011	484
1012	1012	485
1013	1013	486
1014	1014	487
1015	1015	488
1016	1016	489
1017	1017	490
1018	1018	491
1019	1019	492
1020	1020	493
1021	1021	494
1022	1022	495
1023	1023	496
1024	1024	497
1025	1025	498
1026	1026	499
1027	1027	500
1028	1028	501
1029	1029	502
1030	1030	503
1031	1031	504 HB120 INTRODUCEDHB120 INTRODUCED
1032	1032	Page 19
1033	1033	(2) of Section 40-23-2. It is further provided that this
1034	1034	exemption shall not apply to any gross receipts from the sale
1035	1035	of tangible personal property, such as concessions, novelties,
1036	1036	food, beverages, etc. The exemption provided for in this
1037	1037	section shall be limited to those games and operations by
1038	1038	organizations that have qualified for exemption under the
1039	1039	provisions of 26 U.S.C. § 501 (c) (3), (4), (7), (8), (10), or
1040	1040	(19), or which are defined in 26 U.S.C. § 501(d).
1041	1041	(46) The gross receipts derived from the sale or sales
1042	1042	of fruit or other agricultural products by the person or
1043	1043	company, as defined in Section 40-23-1, that planted or
1044	1044	cultivated and harvested the fruit or agricultural product,
1045	1045	when the land is owned or leased by the seller.
1046	1046	(47) The gross receipts derived from the sale or sales
1047	1047	of all domestically mined or produced coal, coke, and coke
1048	1048	by-products used in cogeneration plants.
1049	1049	(48) The gross receipts from the sale or sales of
1050	1050	metal, other than gold or silver, when such metal is purchased
1051	1051	for the purpose of transferring such metal to an investment
1052	1052	trust in exchange for shares or other units, each of which are
1053	1053	both publicly traded and represent fractional undivided
1054	1054	beneficial interests in the trust's net assets, including
1055	1055	metal stored in warehouses located in this state, as well as
1056	1056	the gross proceeds from the sale or other transfer of such
1057	1057	metal to or from the investment trust in exchange for shares
1058	1058	or other units that are publicly traded and represent
1059	1059	fractional undivided beneficial interests in the trust's net
1060	1060	assets but not to the extent that metal is transferred to or
1061	1061	505
1062	1062	506
1063	1063	507
1064	1064	508
1065	1065	509
1066	1066	510
1067	1067	511
1068	1068	512
1069	1069	513
1070	1070	514
1071	1071	515
1072	1072	516
1073	1073	517
1074	1074	518
1075	1075	519
1076	1076	520
1077	1077	521
1078	1078	522
1079	1079	523
1080	1080	524
1081	1081	525
1082	1082	526
1083	1083	527
1084	1084	528
1085	1085	529
1086	1086	530
1087	1087	531
1088	1088	532 HB120 INTRODUCEDHB120 INTRODUCED
1089	1089	Page 20
1090	1090	from the investment trust in exchange for consideration other
1091	1091	than such publicly traded shares or other units. For purposes
1092	1092	of this subdivision, the term "metals" includes, but is not
1093	1093	limited to, copper, aluminum, nickel, zinc, tin, lead, and
1094	1094	other similar metals typically used in commercial and
1095	1095	industrial applications.
1096	1096	(49)a. For the period commencing on October 1, 2012,
1097	1097	and ending May 30, 2027, the gross receipts from the sale of
1098	1098	parts, components, and systems that become a part of a fixed
1099	1099	or rotary wing military aircraft or certified transport
1100	1100	category aircraft that undergoes conversion, reconfiguration,
1101	1101	or general maintenance so long as the address of the aircraft
1102	1102	for FAA registration is not in the state; provided, however,
1103	1103	that this exemption shall not apply to a local sales tax
1104	1104	unless previously exempted by local law or approved by
1105	1105	resolution of the local governing body.
1106	1106	b. The exemption authorized by this subdivision shall
1107	1107	not be available for sales of parts, components, or systems
1108	1108	for new contracts or projects entered into after May 30, 2027,
1109	1109	unless the Legislature enacts legislation to continue or
1110	1110	reinstate the exemption for new contracts or projects after
1111	1111	that date. No action or inaction on the part of the
1112	1112	Legislature shall reduce, suspend, or disqualify sales of
1113	1113	parts, components, or systems from the exemption in any past
1114	1114	year or future years until May 30, 2030, with respect to
1115	1115	contracts or projects entered into on or before May 30, 2027;
1116	1116	it being the sole intent that failure of the Legislature to
1117	1117	enact legislation to reinstate the exemption for new contracts
1118	1118	533
1119	1119	534
1120	1120	535
1121	1121	536
1122	1122	537
1123	1123	538
1124	1124	539
1125	1125	540
1126	1126	541
1127	1127	542
1128	1128	543
1129	1129	544
1130	1130	545
1131	1131	546
1132	1132	547
1133	1133	548
1134	1134	549
1135	1135	550
1136	1136	551
1137	1137	552
1138	1138	553
1139	1139	554
1140	1140	555
1141	1141	556
1142	1142	557
1143	1143	558
1144	1144	559
1145	1145	560 HB120 INTRODUCEDHB120 INTRODUCED
1146	1146	Page 21
1147	1147	or projects after May 30, 2027, shall affect only the
1148	1148	availability of the exemption to new contracts and projects
1149	1149	after that date and shall not affect availability of the
1150	1150	exemption for contracts or projects entered into on or before
1151	1151	May 30, 2027, for which the exemption shall be available until
1152	1152	May 30, 2030.
1153	1153	(50) The gross proceeds from the sale or sales within
1154	1154	school buildings of lunches to pupils of kindergarten,
1155	1155	grammar, and high schools, either public or private, that are
1156	1156	not sold for profit.
1157	1157	(51) The gross proceeds of services provided by
1158	1158	photographers, including, but not limited to, sitting fees and
1159	1159	consultation fees, even when provided as part of a transaction
1160	1160	ultimately involving the sale of one or more photographs, so
1161	1161	long as the exempt services are separately stated to the
1162	1162	customer on a bill of sale, invoice, or like memorialization
1163	1163	of the transaction. For transactions occurring before October
1164	1164	1, 2017, neither the Department of Revenue nor local tax
1165	1165	officials may seek payment for sales tax not collected. With
1166	1166	regard to such transactions in which sales tax was collected
1167	1167	and remitted on services provided by photographers, neither
1168	1168	the taxpayer nor the entity remitting sales tax shall have the
1169	1169	right to seek refund of such tax.
1170	1170	(52) a. For the period commencing on June 1, 2018, and
1171	1171	ending 10 years thereafter, unless extended by an act of the
1172	1172	Legislature, the gross proceeds of sales of bullion or money,
1173	1173	as defined in Section 40-1-1(7).
1174	1174	b. For purposes of this subdivision, the following
1175	1175	561
1176	1176	562
1177	1177	563
1178	1178	564
1179	1179	565
1180	1180	566
1181	1181	567
1182	1182	568
1183	1183	569
1184	1184	570
1185	1185	571
1186	1186	572
1187	1187	573
1188	1188	574
1189	1189	575
1190	1190	576
1191	1191	577
1192	1192	578
1193	1193	579
1194	1194	580
1195	1195	581
1196	1196	582
1197	1197	583
1198	1198	584
1199	1199	585
1200	1200	586
1201	1201	587
1202	1202	588 HB120 INTRODUCEDHB120 INTRODUCED
1203	1203	Page 22
1204	1204	words or terms shall be defined and interpreted as follows:
1205	1205	1. Bullion. Gold, silver, platinum, palladium, or a
1206	1206	combination of each precious metal, that has gone through a
1207	1207	refining process and for which the item's value depends on its
1208	1208	mass and purity, and not on its form, numismatic value, or
1209	1209	other value. The term includes bullion in the form of bars,
1210	1210	ingots, rounds, or coins that meet the requirements set forth
1211	1211	above. Qualifying bullion may contain other metals or
1212	1212	substances, provided that the other substances are minimal in
1213	1213	value compared with the value of the gold, silver, platinum,
1214	1214	or palladium and the other substances do not add value to the
1215	1215	item. For purposes of this subparagraph, "gold, silver,
1216	1216	platinum, or palladium" does not include jewelry or works of
1217	1217	art.
1218	1218	2. Mass. An item's mass is its weight in precious
1219	1219	metal.
1220	1220	3. Numismatic Value. An external value above and beyond
1221	1221	the base value of the underlying precious metal, due to the
1222	1222	item's rarity, condition, age, or other external factor.
1223	1223	4. Purity. An item's purity is the proportion of
1224	1224	precious metal contained within.
1225	1225	c. In order for bullion to qualify for the sales tax
1226	1226	exemption, gold, silver, platinum, and palladium items must
1227	1227	meet all of the following requirements:
1228	1228	1. Must be refined.
1229	1229	2. Must contain at least 80 percent gold, silver,
1230	1230	platinum, or palladium or some combination of these metals.
1231	1231	3. The sales price of the item must fluctuate with and
1232	1232	589
1233	1233	590
1234	1234	591
1235	1235	592
1236	1236	593
1237	1237	594
1238	1238	595
1239	1239	596
1240	1240	597
1241	1241	598
1242	1242	599
1243	1243	600
1244	1244	601
1245	1245	602
1246	1246	603
1247	1247	604
1248	1248	605
1249	1249	606
1250	1250	607
1251	1251	608
1252	1252	609
1253	1253	610
1254	1254	611
1255	1255	612
1256	1256	613
1257	1257	614
1258	1258	615
1259	1259	616 HB120 INTRODUCEDHB120 INTRODUCED
1260	1260	Page 23
1261	1261	depend on the market price of the underlying precious metal,
1262	1262	and not on the item's rarity, condition, age, or other
1263	1263	external factor.
1264	1264	(53) a. The gross proceeds of the initial retail sales
1265	1265	of adaptive equipment that is permanently affixed to a motor
1266	1266	vehicle.
1267	1267	b. For the purposes of this subdivision, the following
1268	1268	words or terms shall be defined and interpreted as follows:
1269	1269	1. Adaptive Equipment. Equipment not generally used by
1270	1270	persons with normal mobility that is appropriate for use in a
1271	1271	motor vehicle and that is not normally provided by a motor
1272	1272	vehicle manufacturer.
1273	1273	2. Motor Vehicle. A vehicle as defined in Section
1274	1274	40-12-240.
1275	1275	3. Motor Vehicle Manufacturer. Every person engaged in
1276	1276	the business of constructing or assembling vehicles or
1277	1277	manufactured homes.
1278	1278	c. In order to qualify for the exemption provided for
1279	1279	herein, the adaptive equipment must be separately stated to
1280	1280	the customer on a bill of sale, invoice, or like
1281	1281	memorialization of the transaction.
1282	1282	(54) For the period commencing on October 1, 2022, and
1283	1283	ending September 30, 2027, unless extended by an act of the
1284	1284	Legislature, the gross receipts derived from the sale of
1285	1285	producer value added agricultural products when the sale is
1286	1286	made by the producer or by the producer's immediate family, or
1287	1287	for the producer by the producer's employees.
1288	1288	(55) a. The gross proceeds derived from the sale of all
1289	1289	617
1290	1290	618
1291	1291	619
1292	1292	620
1293	1293	621
1294	1294	622
1295	1295	623
1296	1296	624
1297	1297	625
1298	1298	626
1299	1299	627
1300	1300	628
1301	1301	629
1302	1302	630
1303	1303	631
1304	1304	632
1305	1305	633
1306	1306	634
1307	1307	635
1308	1308	636
1309	1309	637
1310	1310	638
1311	1311	639
1312	1312	640
1313	1313	641
1314	1314	642
1315	1315	643
1316	1316	644 HB120 INTRODUCEDHB120 INTRODUCED
1317	1317	Page 24
1318	1318	equipment, machinery, software, ancillary components,
1319	1319	appurtenances, accessories, or other infrastructure that is
1320	1320	used in whole or in part to:
1321	1321	1. Produce broadband communications services, including
1322	1322	broadcasting, distributing, sending, receiving, storing,
1323	1323	transmitting, retransmitting, amplifying, switching, providing
1324	1324	connectivity for, or routing communications services; or
1325	1325	2. Provide Internet access.
1326	1326	b. This subsection does not apply to the retail sale of
1327	1327	personal consumer electronics, including, but not limited to,
1328	1328	smartphones, computers and tablets, and consumer-grade modems
1329	1329	and Wi-Fi routers.
1330	1330	c. For the purpose of this subsection, the following
1331	1331	terms and phrases have the following meanings:
1332	1332	1. BROADBAND COMMUNICATION SERVICES. Telecommunication
1333	1333	services, mobile telecommunication services, video programming
1334	1334	services, or direct-to-home satellite television programming
1335	1335	services.
1336	1336	2. EQUIPMENT. Includes, but is not limited to, wires,
1337	1337	cables, fiber, conduits, antennas, poles, switches, routers,
1338	1338	amplifiers, rectifiers, repeaters, receivers, multiplexers,
1339	1339	duplexers, transmitters, circuit cards, insulating and
1340	1340	protective materials and cases, power equipment, backup power
1341	1341	equipment, diagnostic equipment, storage devices, modems, and
1342	1342	other general central office or headend equipment, such as
1343	1343	channel cards, frames, and cabinets, or equipment used in
1344	1344	successor technologies, including items used to monitor, test,
1345	1345	maintain, enable, or facilitate qualifying equipment,
1346	1346	645
1347	1347	646
1348	1348	647
1349	1349	648
1350	1350	649
1351	1351	650
1352	1352	651
1353	1353	652
1354	1354	653
1355	1355	654
1356	1356	655
1357	1357	656
1358	1358	657
1359	1359	658
1360	1360	659
1361	1361	660
1362	1362	661
1363	1363	662
1364	1364	663
1365	1365	664
1366	1366	665
1367	1367	666
1368	1368	667
1369	1369	668
1370	1370	669
1371	1371	670
1372	1372	671
1373	1373	672 HB120 INTRODUCEDHB120 INTRODUCED
1374	1374	Page 25
1375	1375	machinery, software, ancillary components, appurtenances,
1376	1376	accessories, or other infrastructure that is used in whole or
1377	1377	in part to provide broadband communications services or
1378	1378	Internet access.
1379	1379	3. INTERNET ACCESS. A service that enables users to
1380	1380	connect to the Internet to access content, information, or
1381	1381	other services offered over the Internet, including:
1382	1382	(i) The purchase, use, or sale of telecommunications by
1383	1383	a provider of Internet access to the extent the
1384	1384	telecommunications are purchased, used, or sold to provide the
1385	1385	Internet access service or otherwise enable users to access
1386	1386	content, information, or other services offered over the
1387	1387	Internet.
1388	1388	(ii) Services that are incidental to the provision of
1389	1389	Internet access when furnished to users as part of the
1390	1390	Internet access service, such as a homepage, email and instant
1391	1391	messaging, to include voice-capable and video-capable email
1392	1392	and instant messaging, video clips, and personal electronic
1393	1393	storage capacity.
1394	1394	(iii) A homepage, email and instant messaging, to
1395	1395	include voice-capable and video-capable email and instant
1396	1396	messaging, video clips, and personal electronic storage
1397	1397	capacity, that are provided independently or packaged with
1398	1398	Internet access.
1399	1399	(iv) Does not include voice, audio, or video
1400	1400	programming, or other products and services that utilize
1401	1401	Internet protocol or a successor protocol and for which there
1402	1402	is a charge, regardless of whether the charge is separately
1403	1403	673
1404	1404	674
1405	1405	675
1406	1406	676
1407	1407	677
1408	1408	678
1409	1409	679
1410	1410	680
1411	1411	681
1412	1412	682
1413	1413	683
1414	1414	684
1415	1415	685
1416	1416	686
1417	1417	687
1418	1418	688
1419	1419	689
1420	1420	690
1421	1421	691
1422	1422	692
1423	1423	693
1424	1424	694
1425	1425	695
1426	1426	696
1427	1427	697
1428	1428	698
1429	1429	699
1430	1430	700 HB120 INTRODUCEDHB120 INTRODUCED
1431	1431	Page 26
1432	1432	stated or aggregated with the charge for services for Internet
1433	1433	access.
1434	1434	d. The provisions of this subsection are effective for
1435	1435	the period commencing on October 1, 2023, and ending September
1436	1436	30, 2026, unless extended by an act of the Legislature.
1437	1437	(b) Any violation of any provision of this section
1438	1438	shall be punishable in a court of competent jurisdiction by a
1439	1439	fine of not less than five hundred dollars ($500) and no more
1440	1440	than two thousand dollars ($2,000) and imprisonment of not
1441	1441	less than six months nor more than one year in the county
1442	1442	jail."
1443	1443	Section 3. This act shall become effective October 1,
1444	1444	2023, following its passage and approval by the Governor, or
1445	1445	its otherwise becoming law.
1446	1446	701
1447	1447	702
1448	1448	703
1449	1449	704
1450	1450	705
1451	1451	706
1452	1452	707
1453	1453	708
1454	1454	709
1455	1455	710
1456	1456	711
1457	1457	712
1458	1458	713
1459	1459	714