Alabama 2023 Regular Session

Alabama House Bill HB292 Compare Versions

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1	1	HB292INTRODUCED
2	2	Page 0
3	3	Q7LK11-1
4	4	By Representative Sells
5	5	RFD: Ways and Means General Fund
6	6	First Read: 11-Apr-23
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11	11	5 Q7LK11-1 02/24/2023 TEW (L)TEW 2023-489
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13	13	Synopsis: Under existing law, ad valorem taxation applies
14	14	to all real property in the state unless expressly
15	15	exempted by law.
16	16	This bill would exempt certain aircraft from ad
17	17	valorem taxation.
18	18	A BILL
19	19	TO BE ENTITLED
20	20	AN ACT
21	21	Relating to exemptions from ad valorem taxation; to
22	22	amend Section 40-9-1, as last amended by Act 2022-199 of the
23	23	2022 Regular Session, Code of Alabama 1975; to exempt certain
24	24	aircraft from ad valorem taxation.
25	25	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
26	26	Section 1. Section 40-9-1, as last amended by Act
27	27	2022-199 of the 2022 Regular Session, Code of Alabama 1975, is
28	28	amended to read as follows:
29	29	"§40-9-1
30	30	The following property and persons shall be exempt from
31	31	ad valorem taxation and none other:
32	32	(1) All bonds of the United States and this state and
33	33	all county and municipal bonds issued by counties and
34	34	municipalities in this state, all property, real and personal,
35	35	of the United States and this state and of county and
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65	65	municipal corporations in this state; all cemeteries, all
66	66	property, real and personal, used exclusively for religious
67	67	worship, for schools or for purposes purely charitable;
68	68	provided, that property, real or personal, owned by any
69	69	educational, religious, or charitable institution, society or
70	70	corporation let for rent or hire or for use for business
71	71	purposes shall not be exempt from taxation, notwithstanding
72	72	that the income from such property shall be used exclusively
73	73	for education, religious, or charitable purposes; all
74	74	mortgages, together with the notes, debts, and credits secured
75	75	thereby on real and personal property situated in this state,
76	76	which mortgages have been filed for record and the privilege
77	77	tax paid thereon; all security agreements and security
78	78	interests under the Uniform Commercial Code, together with the
79	79	notes, debts, and credits secured thereby; all money on
80	80	deposit in any bank or banking institution and all other
81	81	solvent credits; all warrants issued by county boards of
82	82	education and city boards of education for the purpose of
83	83	erecting, repairing, furnishing school buildings, or for other
84	84	school purposes.
85	85	(2) All property, real or personal, used exclusively
86	86	for hospital purposes, to the amount of seventy-five thousand
87	87	dollars ($75,000), where such hospitals maintain wards for
88	88	charity patients or give treatment to such patients; provided,
89	89	that the treatment of charity patients constitutes at least 15
90	90	percent of the business of such hospitals; provided further,
91	91	that such hospital need not be assessed for taxation if the
92	92	owner or manager shall file with the county tax assessor
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122	122	wherein such hospital is located within the time allowed for
123	123	assessing the property for taxation a certificate that such
124	124	hospital has done 15 percent charity work in the preceding tax
125	125	year; and further provided, that such hospital through its
126	126	owner or manager shall have until the expiration of the
127	127	preceding tax year to class its work and ascertain whether or
128	128	not such hospital has done 15 percent of its treatment of
129	129	patients as charity work.
130	130	(3) The shares of the capital stock of any corporation
131	131	owning and operating a hospital, to the extent of seventy-five
132	132	thousand dollars ($75,000) in value; provided, that the
133	133	corporation maintains wards for charity patients and gives
134	134	treatment to such patients, which treatment constitutes at
135	135	least 15 percent of the business of the hospital of the
136	136	corporation; provided, that the total exemption granted to any
137	137	such corporation shall not exceed seventy-five thousand
138	138	dollars ($75,000), taking into consideration its real and
139	139	personal property and the value of its shares of capital
140	140	stock.
141	141	(4) All property owned by the American Legion or by
142	142	Veterans of Foreign Wars or by the Disabled American Veterans,
143	143	or any post thereof; provided, that such property is used and
144	144	occupied exclusively by the organization.
145	145	(5) All the property of literary and scientific
146	146	institutions and literary societies, when employed or used in
147	147	the regular business of the institutions.
148	148	(6) The libraries of ministers of the gospel, all
149	149	libraries other than those of a professional character and all
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179	179	religious books kept for sale by ministers of the gospel and
180	180	colporteurs.
181	181	(7) The property of individuals who are deaf, hard of
182	182	hearing, or insane to the extent of three thousand dollars
183	183	($3,000) and the property of blind individuals to the extent
184	184	of twelve thousand dollars ($12,000).
185	185	(8) All family portraits.
186	186	(9) All cotton, livestock or agricultural products that
187	187	have been raised or grown in the State of Alabama and remain
188	188	in the hands of the producer thereof, or his or her landlord,
189	189	or in the hands of a cooperative association for all time, and
190	190	for a period of one year in the hands of the purchaser or the
191	191	manufacturer.
192	192	(10) All cotton, wherever grown, stored in licensed
193	193	warehouses in the State of Alabama for a period not exceeding
194	194	12 months.
195	195	(11) Provisions and supplies on hand for the current
196	196	year for the use of the family and the making of crops; all
197	197	wearing apparel; farming tools; tools and implements of
198	198	mechanics to the value of two hundred dollars ($200); all
199	199	livestock, including mules, studs, jacks and jennets, cattle,
200	200	horses, cows, calves, hogs, sheep, and goats; and household
201	201	and kitchen furniture and one sewing machine.
202	202	(12) No license or taxation of any character, except
203	203	franchise taxes provided by Section 229 of the Constitution of
204	204	the State of Alabama, shall be collected or required to be
205	205	paid to the state or any county or municipality therein by any
206	206	state or county fair, agricultural association, or stock,
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236	236	kennel or poultry show. Athletic stadiums owned and controlled
237	237	by universities, schools, or colleges and which are used
238	238	exclusively for the purpose of promoting intercollegiate or
239	239	interschool athletics; provided, that the revenue received
240	240	from athletic stadiums, when admission is charged, shall be
241	241	used for the benefit of athletic associations of such
242	242	universities, colleges, or schools. Nothing contained in this
243	243	subdivision shall be construed to prohibit any municipality,
244	244	county, or state from imposing any license tax upon or for the
245	245	privilege of engaging in the business of supplying services
246	246	for hire or reward or selling commodities other than
247	247	livestock, farm products, or farm implements or conducting or
248	248	operating devices or games of skill or amusements or other
249	249	games or devices, or conducting or operating shows, displays
250	250	or exhibits other than shows, displays or exhibits of
251	251	agricultural implements, farm products, livestock, and
252	252	athletic prowess.
253	253	(13) All material, including without limitation coke,
254	254	to be compounded or further manufactured, when stocked at any
255	255	plant or furnace for manufacturing purposes in Alabama.
256	256	(14) All articles manufactured in Alabama, including
257	257	pig iron, in the hands of the producer or manufacturer
258	258	thereof, for 12 months after its production or manufacture.
259	259	(15) All property, both real and personal, owned by any
260	260	unit or organization of the Alabama National Guard officially
261	261	recognized as such by the federal government and organized and
262	262	maintained by the state, and all property owned by shares and
263	263	used exclusively by and kept exclusively in the possession of
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293	293	any such unit or organization of the Alabama National Guard,
294	294	the annual rent or hire of which is not in excess of the
295	295	annual state, county, and municipal taxes on the property
296	296	shall be exempt from taxation by the state, and the county and
297	297	municipality in which the same may be situated.
298	298	(16) All poultry.
299	299	(17) The property of all incompetent veterans to the
300	300	value of three thousand dollars ($3,000).
301	301	(18) The following items of personal property when
302	302	owned by individuals for personal use in the home or usually
303	303	kept at the home of the owner and not carried as stocks of
304	304	merchandise, namely: Libraries; phonographs; pianos and other
305	305	musical instruments; paintings; precious stones, jewelry,
306	306	plate silverware, ornaments, and articles of taste; watches
307	307	and clocks; wagons, buggies, bicycles, guns, pistols, canes,
308	308	golf sticks, golf bags, and sporting goods; money hoarded;
309	309	radios; mechanical and electrical refrigerators; electrical
310	310	appliances.
311	311	(19) All property owned by the Benevolent and
312	312	Protective Order of Elks, Fraternal Order of Police, Fraternal
313	313	Order of Eagles, or Loyal Order of Moose, or lodge thereof;
314	314	provided, that such property is used and occupied exclusively
315	315	by such organization.
316	316	(20) All devices, facilities, or structures, and all
317	317	identifiable components thereof or materials for use therein,
318	318	acquired or constructed primarily for the control, reduction,
319	319	or elimination of air or water pollution.
320	320	(21) Tobacco leaf stored in hogsheads.
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350	350	(22) All farm tractors, as that term is defined in
351	351	Section 32-1-1.1; and all farming implements, as that term is
352	352	used in subdivision (b)(5) of Section 40-11-1, when used
353	353	exclusively in connection with agricultural property as
354	354	defined in subdivision (b)(1) of Section 40-8-1.
355	355	(23) All grain bins used exclusively for the purpose of
356	356	storing, holding, drying, preserving, or otherwise preparing a
357	357	grain, as defined in Section 2-31-1, for market. For purposes
358	358	of this chapter, "grain bin" means a structure and its
359	359	component parts.
360	360	(24) All stocks of goods, wares, and merchandise
361	361	described in subdivision (b)(4) of Section 40-11-1.
362	362	(25) All aircraft, replacement parts, components,
363	363	systems, supplies, and sundries affixed or used on the
364	364	aircraft, and ground support equipment and vehicles used by or
365	365	for the aircraft, when used by a certificated or licensed air
366	366	carrier with a hub operation within this state, for use in
367	367	conducting intrastate, interstate, or foreign commerce for
368	368	transporting people or property by air. For the purpose of
369	369	this subdivision, the words "hub operation within this state"
370	370	shall be construed to have all of the following criteria:
371	371	a. There originates from the location 15 or more flight
372	372	departures and five or more different first-stop destinations
373	373	five days per week for six or more months during the calendar
374	374	year.
375	375	b. Passengers or property or both are regularly
376	376	exchanged at the location between flights of the same or a
377	377	different certificated or licensed air carrier.
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407	407	(26) All property described in Title 12 U.S.C. § 1701q,
408	408	commonly known as HUD 202 property, is hereby exempt from any
409	409	and all ad valorem taxes.
410	410	(27) All vessels and equipment thereon, used
411	411	predominantly in the business of commercial fishing, as
412	412	defined in Section 40-23-1, by the owners thereof.
413	413	(28) All aircraft, as defined by Section 23-1-352, over
414	414	30 years old that are owned by any person who is 65 years of
415	415	age or older."
416	416	Section 2. This act shall become effective October 1,
417	417	2023 following its passage and approval by the Governor, or
418	418	its otherwise becoming law.
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