Alabama 2023 Regular Session

Alabama House Bill HB330 Compare Versions

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

Old	New	Differences
1	1	HB330INTRODUCED
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3	3	ND7L8J-1
4	4	By Representatives Crawford, Whitt, Standridge, Ingram,
5	5	Pettus, Rehm, Smith, Brown, Hammett
6	6	RFD: Ways and Means Education
7	7	First Read: 18-Apr-23
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13	13	6 ND7L8J-1 04/12/2023 ZAK (L)cr 2023-1486
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15	15	SYNOPSIS:
16	16	Under existing law, the gross proceeds from the
17	17	sale of certain items are exempted from the tax levied
18	18	on the sale of items in the state.
19	19	This bill would exempt the gross proceeds from
20	20	the sale of materials purchased to be used as fencing
21	21	for agriculture livestock purposes from the state's
22	22	sales and use tax.
23	23	A BILL
24	24	TO BE ENTITLED
25	25	AN ACT
26	26	Relating to sales tax exemptions; to amend Section
27	27	40-23-4, Code of Alabama 1975, as last amended by Acts
28	28	2022-199, 2022-291, 2022-293, and 2022-373, 2022 Regular
29	29	Session, to exempt from sales tax the gross proceeds from the
30	30	sale of materials to be used as fencing in agriculture
31	31	livestock applications.
32	32	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
33	33	Section 1. Section 40-23-4, Code of Alabama 1975, as
34	34	last amended by Acts 2022-199, 2022-291, 2022-293, and
35	35	2022-373, 2022 Regular Session, is amended to read as follows:
36	36	"§40-23-4
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66	66	(a) There are exempted from the provisions of this
67	67	division and from the computation of the amount of the tax
68	68	levied, assessed, or payable under this division the
69	69	following:
70	70	(1) The gross proceeds of the sales of lubricating oil and
71	71	gasoline as defined in Sections 40-17-30 and 40-17-170 and the
72	72	gross proceeds from those sales of lubricating oil destined
73	73	for out-of-state use which are transacted in a manner whereby
74	74	an out-of-state purchaser takes delivery of such oil at a
75	75	distributor's plant within this state and transports it
76	76	out-of-state, which are otherwise taxed.
77	77	(2) The gross proceeds of the sale, or sales, of
78	78	fertilizer when used for agricultural purposes. The word
79	79	"fertilizer" shall not be construed to include cottonseed
80	80	meal, when not in combination with other materials.
81	81	(3) The gross proceeds of the sale, or sales, of seeds
82	82	for planting purposes and baby chicks and poults. Nothing
83	83	herein shall be construed to exempt or exclude from the
84	84	computation of the tax levied, assessed, or payable, the gross
85	85	proceeds of the sale or sales of plants, seedlings, nursery
86	86	stock, or floral products.
87	87	(4) The gross proceeds of sales of insecticides and
88	88	fungicides when used for agricultural purposes or when used by
89	89	persons properly permitted by the Department of Agriculture
90	90	and Industries or any applicable local or state governmental
91	91	authority for structural pest control work and feed for
92	92	livestock and poultry, but not including prepared food for
93	93	dogs and cats.
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123	123	(5) The gross proceeds of sales of all livestock by
124	124	whomsoever sold, and also the gross proceeds of poultry and
125	125	other products of the farm, dairy, grove, or garden, when in
126	126	the original state of production or condition of preparation
127	127	for sale, when such sale or sales are made by the producer or
128	128	members of the producer's immediate family or for the producer
129	129	by those employed by the producer to assist in the production
130	130	thereof. Nothing herein shall be construed to exempt or
131	131	exclude from the measure or computation of the tax levied,
132	132	assessed, or payable hereunder, the gross proceeds of sales of
133	133	poultry or poultry products when not products of the farm.
134	134	(6) Cottonseed meal exchanged for cottonseed at or by
135	135	cotton gins.
136	136	(7) The gross receipts from the business on which, or
137	137	for engaging in which, a license or privilege tax is levied by
138	138	or under Sections 40-21-50, 40-21-53, and 40-21-56 through
139	139	40-21-60; provided, that nothing contained in this subdivision
140	140	shall be construed to exempt or relieve the person or persons
141	141	operating the business enumerated in these sections from the
142	142	payments of the tax levied by this division upon or measured
143	143	by the gross proceeds of sales of any tangible personal
144	144	property, except gas and water, the gross receipts from the
145	145	sale of which are the measure of the tax levied by Section
146	146	40-21-50, merchandise or other tangible commodities sold at
147	147	retail by the persons, unless the gross proceeds of sale
148	148	thereof are otherwise specifically exempted by this division.
149	149	(8) The gross proceeds of sales or gross receipts of or
150	150	by any person, firm, or corporation, from the sale of
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180	180	transportation, gas, water, or electricity, of the kinds and
181	181	natures, the rates and charges for which, when sold by public
182	182	utilities, are customarily fixed and determined by the Public
183	183	Service Commission of Alabama or like regulatory bodies.
184	184	(9) The gross proceeds of the sale, or sales of wood
185	185	residue, coal, or coke to manufacturers, electric power
186	186	companies, and transportation companies for use or consumption
187	187	in the production of by-products, or the generation of heat or
188	188	power used in manufacturing tangible personal property for
189	189	sale, for the generation of electric power or energy for use
190	190	in manufacturing tangible personal property for sale or for
191	191	resale, or for the generation of motive power for
192	192	transportation.
193	193	(10) The gross proceeds from the sale or sales of fuel
194	194	and supplies for use or consumption aboard ships, vessels,
195	195	towing vessels, or barges, or drilling ships, rigs or barges,
196	196	or seismic or geophysical vessels, or other watercraft (herein
197	197	for purposes of this exemption being referred to as "vessels")
198	198	engaged in foreign or international commerce or in interstate
199	199	commerce; provided, that nothing in this division shall be
200	200	construed to exempt or exclude from the measure of the tax
201	201	herein levied the gross proceeds of sale or sales of material
202	202	and supplies to any person for use in fulfilling a contract
203	203	for the painting, repair, or reconditioning of vessels,
204	204	barges, ships, other watercraft, and commercial fishing
205	205	vessels of over five tons load displacement as registered with
206	206	the U.S. Coast Guard and licensed by the State of Alabama
207	207	Department of Conservation and Natural Resources.
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237	237	For purposes of this subdivision, it shall be presumed
238	238	that vessels engaged in the transportation of cargo between
239	239	ports in the State of Alabama and ports in foreign countries
240	240	or possessions or territories of the United States or between
241	241	ports in the State of Alabama and ports in other states are
242	242	engaged in foreign or international commerce or interstate
243	243	commerce, as the case may be. For the purposes of this
244	244	subdivision, the engaging in foreign or international commerce
245	245	or interstate commerce shall not require that the vessel
246	246	involved deliver cargo to or receive cargo from a port in the
247	247	State of Alabama. For purposes of this subdivision, vessels
248	248	carrying passengers for hire, and no cargo, between ports in
249	249	the State of Alabama and ports in foreign countries or
250	250	possessions or territories of the United States or between
251	251	ports in the State of Alabama and ports in other states shall
252	252	be engaged in foreign or international commerce or interstate
253	253	commerce, as the case may be, if, and only if, both of the
254	254	following conditions are met: (i) The vessel in question is a
255	255	vessel of at least 100 gross tons; and (ii) the vessel in
256	256	question has an unexpired certificate of inspection issued by
257	257	the United States Coast Guard or by the proper authority of a
258	258	foreign country for a foreign vessel, which certificate is
259	259	recognized as acceptable under the laws of the United States.
260	260	Vessels that are engaged in foreign or international commerce
261	261	or interstate commerce shall be deemed for the purposes of
262	262	this subdivision to remain in such commerce while awaiting or
263	263	under repair in a port of the State of Alabama if the vessel
264	264	returns after such repairs are completed to engaging in
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294	294	foreign or international commerce or interstate commerce. For
295	295	purposes of this subdivision, seismic or geophysical vessels
296	296	which are engaged either in seismic or geophysical tests or
297	297	evaluations exclusively in offshore federal waters or in
298	298	traveling to or from conducting such tests or evaluations
299	299	shall be deemed to be engaged in international or foreign
300	300	commerce. For purposes of this subdivision, proof that fuel
301	301	and supplies purchased are for use or consumption aboard
302	302	vessels engaged in foreign or international commerce or in
303	303	interstate commerce may be accomplished by the merchant or
304	304	seller securing the duly signed certificate of the vessel
305	305	owner, operator, or captain or such person's respective agent,
306	306	on a form prescribed by the department, that the fuel and
307	307	supplies purchased are for use or consumption aboard vessels
308	308	engaged in foreign or international commerce or in interstate
309	309	commerce. Any person filing a false certificate shall be
310	310	guilty of a misdemeanor and upon conviction shall be fined not
311	311	less than twenty-five dollars ($25) nor more than five hundred
312	312	dollars ($500) for each offense. Each false certificate filed
313	313	shall constitute a separate offense. Any person filing a false
314	314	certificate shall be liable to the department for all taxes
315	315	imposed by this division upon the merchant or seller, together
316	316	with any interest or penalties thereon, by reason of the sale
317	317	or sales of fuel and supplies applicable to the false
318	318	certificate. If a merchant or seller of fuel and supplies
319	319	secures the certificate herein mentioned, properly completed,
320	320	the merchant or seller shall not be liable for the taxes
321	321	imposed by this division, if the merchant or seller had no
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351	351	knowledge that the certificate was false when it was filed
352	352	with the merchant or seller.
353	353	(11) The gross proceeds of sales of tangible personal
354	354	property to the State of Alabama, to the counties within the
355	355	state and to incorporated municipalities of the State of
356	356	Alabama.
357	357	(12) The gross proceeds of the sale or sales of
358	358	railroad cars, vessels, barges, and commercial fishing vessels
359	359	of over five tons load displacement as registered with the
360	360	U.S. Coast Guard and licensed by the State of Alabama
361	361	Department of Conservation and Natural Resources, when sold by
362	362	the manufacturers or builders thereof.
363	363	(13) The gross proceeds of the sale or sales of
364	364	materials, equipment, and machinery that, at any time, enter
365	365	into and become a component part of ships, vessels, towing
366	366	vessels or barges, or drilling ships, rigs or barges, or
367	367	seismic or geophysical vessels, other watercraft and
368	368	commercial fishing vessels of over five tons load displacement
369	369	as registered with the U.S. Coast Guard and licensed by the
370	370	State of Alabama Department of Conservation and Natural
371	371	Resources. Additionally, the gross proceeds from the sale or
372	372	sales of lifeboats, personal flotation devices, ring life
373	373	buoys, survival craft equipment, distress signals, EPIRB's,
374	374	fire extinguishers, injury placards, waste management plans
375	375	and logs, marine sanitation devices, navigation rulebooks,
376	376	navigation lights, sound signals, navigation day shapes, oil
377	377	placard cards, garbage placards, FCC SSL, stability
378	378	instructions, first aid equipment, compasses, anchor and radar
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408	408	reflectors, general alarm systems, bilge pumps, piping, and
409	409	discharge and electronic position fixing devices which are
410	410	used on the aforementioned watercraft.
411	411	(14) The gross proceeds of the sale or sales of fuel
412	412	oil purchased as fuel for kiln use in manufacturing
413	413	establishments.
414	414	(15) The gross proceeds of the sale or sales of
415	415	tangible personal property to county and city school boards
416	416	within the State of Alabama, independent school boards within
417	417	the State of Alabama, all educational institutions and
418	418	agencies of the State of Alabama, the counties within the
419	419	state, or any incorporated municipalities of the State of
420	420	Alabama, and private educational institutions operating within
421	421	the State of Alabama offering conventional and traditional
422	422	courses of study, such as those offered by public schools,
423	423	colleges, or universities within the State of Alabama; but not
424	424	including nurseries, day care centers, and home schools.
425	425	(16) The gross proceeds from the sale of all devices or
426	426	facilities, and all identifiable components thereof, or
427	427	materials for use therein, acquired primarily for the control,
428	428	reduction, or elimination of air or water pollution and the
429	429	gross proceeds from the sale of all identifiable components
430	430	of, or materials used or intended for use in, structures built
431	431	primarily for the control, reduction, or elimination of air
432	432	and water pollution.
433	433	(17) The gross proceeds of sales of tangible personal
434	434	property or the gross receipts of any business which the state
435	435	is prohibited from taxing under the Constitution or laws of
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465	465	the United States or under the Constitution of this state.
466	466	(18) When dealers or distributors use parts taken from
467	467	stocks owned by them in making repairs without charge for the
468	468	parts to the owner of the property repaired pursuant to
469	469	warranty agreements entered into by manufacturers, such use
470	470	shall not constitute taxable sales to the manufacturers,
471	471	distributors, or to the dealers, under this division or under
472	472	any county sales tax law.
473	473	(19) The gross proceeds received from the sale or
474	474	furnishing of food, including potato chips, candy, fruit and
475	475	similar items, soft drinks, tobacco products, and stationery
476	476	and other similar or related articles by hospital canteens
477	477	operated by Alabama state hospitals at Bryce Hospital and
478	478	Partlow State School for Mental Deficients at Tuscaloosa,
479	479	Alabama, and Searcy Hospital at Mt. Vernon, Alabama, for the
480	480	benefit of the patients therein.
481	481	(20) The gross proceeds of the sale, or sales, of
482	482	wrapping paper and other wrapping materials when used in
483	483	preparing poultry or poultry products for delivery, shipment,
484	484	or sale by the producer, processor, packer, or seller of such
485	485	poultry or poultry products, including pallets used in
486	486	shipping poultry and egg products, paper or other materials
487	487	used for lining boxes or other containers in which poultry or
488	488	poultry products are packed together with any other materials
489	489	placed in such containers for the delivery, shipment, or sale
490	490	of poultry or poultry products.
491	491	(21) The gross proceeds of the sales of all
492	492	antibiotics, hormones and hormone preparations, drugs,
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522	522	medicines or medications, vitamins, minerals or other
523	523	nutrients, and all other feed ingredients including
524	524	concentrates, supplements, and other feed ingredients when
525	525	such substances are used as ingredients in mixing and
526	526	preparing feed for fish raised to be sold on a commercial
527	527	basis, livestock, and poultry. Such exemption herein granted
528	528	shall be in addition to exemptions now provided by law for
529	529	feed for fish raised to be sold on a commercial basis,
530	530	livestock, and poultry, but not including prepared foods for
531	531	dogs or cats.
532	532	(22) The gross proceeds of the sale, or sales, of
533	533	seedlings, plants, shoots, and slips which are to be used for
534	534	planting vegetable gardens or truck farms and other
535	535	agricultural purposes. Nothing herein shall be construed to
536	536	exempt, or exclude from the computation of the tax levied,
537	537	assessed, or payable, the gross proceeds of the sale, or the
538	538	use of plants, seedlings, shoots, slips, nursery stock, and
539	539	floral products, except as hereinabove exempted.
540	540	(23) The gross proceeds of the sale, or sales, of
541	541	fabricated steel tube sections, when produced and fabricated
542	542	in this state by any person, firm, or corporation for any
543	543	vehicular tunnel for highway vehicular traffic, when sold by
544	544	the manufacturer or fabricator thereof, and also the gross
545	545	proceeds of the sale, or sales, of steel which enters into and
546	546	becomes a component part of such fabricated steel tube
547	547	sections of said tunnel.
548	548	(24) The gross proceeds from sales of admissions to any
549	549	theatrical production, symphonic or other orchestral concert,
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579	579	ballet, or opera production when the concert or production is
580	580	presented by any society, association, guild, or workshop
581	581	group, organized within this state, whose members or some of
582	582	whose members regularly and actively participate in the
583	583	concerts or productions for the purposes of providing a
584	584	creative outlet for the cultural and educational interests of
585	585	its members, and of promoting such interests for the
586	586	betterment of the community by presenting the productions to
587	587	the general public for an admission charge. The employment of
588	588	a paid director or conductor to assist in any such
589	589	presentation described in this subdivision shall not be
590	590	construed to prohibit the exemptions herein provided.
591	591	(25) The gross proceeds of sales of "herbicides" for
592	592	agricultural uses by whomsoever sold. The term herbicides, as
593	593	used in this subdivision, means any substance or mixture of
594	594	substances intended to prevent, destroy, repel, or retard the
595	595	growth of weeds or plants. The term includes preemergence
596	596	herbicides, postemergence herbicides, lay-by herbicides,
597	597	pasture herbicides, defoliant herbicides, and desiccant
598	598	herbicides.
599	599	(26) The Alabama Chapter of the Cystic Fibrosis
600	600	Research Foundation and the Jefferson Tuberculosis Sanatorium
601	601	and any of their departments or agencies, heretofore or
602	602	hereafter organized and existing in good faith in the State of
603	603	Alabama for purposes other than for pecuniary gain and not for
604	604	individual profit, shall be exempted from the computation of
605	605	the tax on the gross proceeds of all sales levied, assessed,
606	606	or payable.
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636	636	(27) The gross proceeds from the sale or sales of fuel
637	637	for use or consumption aboard commercial fishing vessels are
638	638	exempt from the computation of all sales taxes levied,
639	639	assessed, or payable under this division or levied under any
640	640	county or municipal sales tax law.
641	641	(28) The gross proceeds from the sales of rope, fishing
642	642	nets, tools, or any substitute used directly in the process of
643	643	commercial fishing by a holder of a commercial license issued
644	644	pursuant to Chapter 12 of Title 9.
645	645	(29) The gross proceeds of sales of sawdust, wood
646	646	shavings, wood chips, and other like materials sold for use as
647	647	chicken litter by poultry producers and poultry processors.
648	648	(30) The gross proceeds of the sales of all
649	649	antibiotics, hormones and hormone preparations, drugs,
650	650	medicines, and other medications including serums and
651	651	vaccines, vitamins, minerals, or other nutrients for use in
652	652	the production and growing of fish, livestock, and poultry by
653	653	whomsoever sold. The exemption herein granted shall be in
654	654	addition to the exemption provided by law for feed for fish,
655	655	livestock, and poultry, and in addition to the exemptions
656	656	provided by law for the above-enumerated substances and
657	657	products when mixed and used as ingredients in fish,
658	658	livestock, and poultry feed.
659	659	(31) The gross proceeds of the sale or sales of all
660	660	medicines prescribed by physicians for persons who are 65
661	661	years of age or older, and when the prescriptions are filled
662	662	by licensed pharmacists, shall be exempted under this division
663	663	or under any county or municipal sales tax law. The exemption
664	664	309
665	665	310
666	666	311
667	667	312
668	668	313
669	669	314
670	670	315
671	671	316
672	672	317
673	673	318
674	674	319
675	675	320
676	676	321
677	677	322
678	678	323
679	679	324
680	680	325
681	681	326
682	682	327
683	683	328
684	684	329
685	685	330
686	686	331
687	687	332
688	688	333
689	689	334
690	690	335
691	691	336 HB330 INTRODUCEDHB330 INTRODUCED
692	692	Page 13
693	693	provided in this section shall not apply to any medicine
694	694	purchased in any manner other than as is herein provided.
695	695	For the purposes of this subdivision, proof of age may
696	696	be accomplished by filing with the dispensing pharmacist any
697	697	one or more of the following documents:
698	698	a. The name and claim number as shown on a Medicare
699	699	card issued by the United States Social Security
700	700	Administration.
701	701	b. A certificate executed by any adult person having
702	702	knowledge of the fact that the person for whom the medicine
703	703	was prescribed is not less than 65 years of age.
704	704	c. An affidavit executed by any adult person having
705	705	knowledge of the fact that the person for whom the medicine
706	706	was prescribed is not less than 65 years of age.
707	707	For the purposes of this subdivision, any person filing
708	708	a false proof of age shall be guilty of a misdemeanor and upon
709	709	conviction thereof shall be punished by a fine of one hundred
710	710	dollars ($100).
711	711	(32) There shall be exempted from the tax levied by
712	712	this division the gross receipts of sales of grass sod of all
713	713	kinds and character when in the original state of production
714	714	or condition of preparation for sale, when the sales are made
715	715	by the producer or members of the producer's family or for the
716	716	producer by those employed by the producer to assist in the
717	717	production thereof; provided, that nothing herein shall be
718	718	construed to exempt sales of sod by a person engaged in the
719	719	business of selling plants, seedlings, nursery stock, or
720	720	floral products.
721	721	337
722	722	338
723	723	339
724	724	340
725	725	341
726	726	342
727	727	343
728	728	344
729	729	345
730	730	346
731	731	347
732	732	348
733	733	349
734	734	350
735	735	351
736	736	352
737	737	353
738	738	354
739	739	355
740	740	356
741	741	357
742	742	358
743	743	359
744	744	360
745	745	361
746	746	362
747	747	363
748	748	364 HB330 INTRODUCEDHB330 INTRODUCED
749	749	Page 14
750	750	(33) The gross receipts of sales of the following items
751	751	or materials that are necessary in the farm-to-market
752	752	production of tomatoes when such items or materials are used
753	753	by the producer or members of the producer's family or for the
754	754	producer by those employed by the producer to assist in the
755	755	production thereof: Twine for tying tomatoes, tomato stakes,
756	756	field boxes (wooden boxes used to take tomatoes from the
757	757	fields to shed), and tomato boxes used in shipments to
758	758	customers.
759	759	(34) The gross proceeds from the sale of liquefied
760	760	petroleum gas or natural gas sold to be used for agricultural
761	761	purposes.
762	762	(35) The gross receipts of sales from state nurseries
763	763	of forest tree seedlings.
764	764	(36) The gross receipts of sales of forest tree seed by
765	765	the state.
766	766	(37) The gross receipts of sales of Lespedeza bicolor
767	767	and other species of perennial plant seed and seedlings sold
768	768	for wildlife and game food production purposes by the state.
769	769	(38) The gross receipts of any aircraft manufactured,
770	770	sold, and delivered in this state if the aircraft are not
771	771	permanently domiciled in Alabama and are removed to another
772	772	state.
773	773	(39) The gross proceeds from the sale or sales of all
774	774	diesel fuel used for off-highway agricultural purposes.
775	775	(40) The gross proceeds from sales of admissions to any
776	776	sporting event that:
777	777	a. Takes place in the State of Alabama on or after
778	778	365
779	779	366
780	780	367
781	781	368
782	782	369
783	783	370
784	784	371
785	785	372
786	786	373
787	787	374
788	788	375
789	789	376
790	790	377
791	791	378
792	792	379
793	793	380
794	794	381
795	795	382
796	796	383
797	797	384
798	798	385
799	799	386
800	800	387
801	801	388
802	802	389
803	803	390
804	804	391
805	805	392 HB330 INTRODUCEDHB330 INTRODUCED
806	806	Page 15
807	807	January 1, 1984, regardless of when such sales occur; and
808	808	b. Is hosted by a not-for-profit corporation organized
809	809	and existing under the laws of the State of Alabama; and
810	810	c. Determines a national championship of a national
811	811	organization, including, but not limited to, the Professional
812	812	Golfers Association of America, the Tournament Players
813	813	Association, the United States Golf Association, the United
814	814	States Tennis Association, and the National Collegiate
815	815	Athletic Association; and
816	816	d. Has not been held in the State of Alabama on more
817	817	than one prior occasion, provided, however, that for such
818	818	purpose the Professional Golfers Association Championship, the
819	819	United States Open Golf Championship, the United States
820	820	Amateur Golf Championship of the United States Golf
821	821	Association, and the United States Open Tennis Championship
822	822	shall each be treated as a separate event.
823	823	(41) The gross receipts from the sale of any aircraft
824	824	and replacement parts, components, systems, supplies, and
825	825	sundries affixed or used on the aircraft and ground support
826	826	equipment and vehicles used by or for the aircraft to or by a
827	827	certificated or licensed air carrier with a hub operation
828	828	within this state, for use in conducting intrastate,
829	829	interstate, or foreign commerce for transporting people or
830	830	property by air. For the purpose of this subdivision, the
831	831	words "hub operation within this state" shall be construed to
832	832	have both of the following criteria:
833	833	a. There originates from the location 15 or more flight
834	834	departures and five or more different first-stop destinations
835	835	393
836	836	394
837	837	395
838	838	396
839	839	397
840	840	398
841	841	399
842	842	400
843	843	401
844	844	402
845	845	403
846	846	404
847	847	405
848	848	406
849	849	407
850	850	408
851	851	409
852	852	410
853	853	411
854	854	412
855	855	413
856	856	414
857	857	415
858	858	416
859	859	417
860	860	418
861	861	419
862	862	420 HB330 INTRODUCEDHB330 INTRODUCED
863	863	Page 16
864	864	five days per week for six or more months during the calendar
865	865	year.
866	866	b. Passengers or property or both are regularly
867	867	exchanged at the location between flights of the same or a
868	868	different certificated or licensed air carrier.
869	869	(42) The gross receipts from the sale of hot or cold
870	870	food and beverage products sold to or by a certificated or
871	871	licensed air carrier with a hub operation within this state,
872	872	for use in conducting intrastate, interstate, or foreign
873	873	commerce for transporting people or property by air. For the
874	874	purpose of this subdivision, the words "hub operation within
875	875	this state" shall be construed to have all of the following
876	876	criteria:
877	877	a. There originates from the location 15 or more flight
878	878	departures and five or more different first-stop destinations
879	879	five days per week for six or more months during the calendar
880	880	year.
881	881	b. Passengers or property or both are regularly
882	882	exchanged at the location between flights of the same or a
883	883	different certificated or licensed air carrier.
884	884	(43) The gross receipts from the sale of any aviation
885	885	jet fuel to a certificated or licensed air carrier purchased
886	886	for use in scheduled all-cargo operations being conducted on
887	887	international flights or in international commerce. For
888	888	purposes of this subdivision, the following words or terms
889	889	shall be defined and interpreted as follows:
890	890	a. Air Carrier. Any person, firm, corporation, or
891	891	entity undertaking by any means, directly or indirectly, to
892	892	421
893	893	422
894	894	423
895	895	424
896	896	425
897	897	426
898	898	427
899	899	428
900	900	429
901	901	430
902	902	431
903	903	432
904	904	433
905	905	434
906	906	435
907	907	436
908	908	437
909	909	438
910	910	439
911	911	440
912	912	441
913	913	442
914	914	443
915	915	444
916	916	445
917	917	446
918	918	447
919	919	448 HB330 INTRODUCEDHB330 INTRODUCED
920	920	Page 17
921	921	provide air transportation.
922	922	b. All-Cargo Operations. Any flight conducted by an air
923	923	carrier for compensation or hire other than a passenger
924	924	carrying flight, except passengers as specified in 14 C.F.R. §
925	925	121.583(a) or 14 C.F.R. § 135.85, as amended.
926	926	c. International Commerce. Any air carrier engaged in
927	927	all-cargo operations transporting goods for compensation or
928	928	hire on international flights.
929	929	d. International Flights. Any air carrier conducting
930	930	scheduled all-cargo operations between any point within the 50
931	931	states of the United States and the District of Columbia and
932	932	any point outside the 50 states of the United States and the
933	933	District of Columbia, including any interim stops within the
934	934	United States so long as the ultimate origin or destination of
935	935	the aircraft is outside the United States and the District of
936	936	Columbia.
937	937	(44) The gross proceeds of the sale or sales of the
938	938	following:
939	939	a. Drill pipe, casing, tubing, and other pipe used for
940	940	the exploration for or production of oil, gas, sulphur, or
941	941	other minerals in offshore federal waters.
942	942	b. Tangible personal property exclusively used for the
943	943	exploration for or production of oil, gas, sulphur, or other
944	944	minerals in offshore federal waters.
945	945	c. Fuel and supplies for use or consumption aboard
946	946	boats, ships, aircraft, and towing vessels when used
947	947	exclusively in transporting persons or property between a
948	948	point in Alabama and a point or points in offshore federal
949	949	449
950	950	450
951	951	451
952	952	452
953	953	453
954	954	454
955	955	455
956	956	456
957	957	457
958	958	458
959	959	459
960	960	460
961	961	461
962	962	462
963	963	463
964	964	464
965	965	465
966	966	466
967	967	467
968	968	468
969	969	469
970	970	470
971	971	471
972	972	472
973	973	473
974	974	474
975	975	475
976	976	476 HB330 INTRODUCEDHB330 INTRODUCED
977	977	Page 18
978	978	waters for the exploration for or production of oil, gas,
979	979	sulphur, or other minerals in offshore federal waters.
980	980	d. Drilling equipment that is used for the exploration
981	981	for or production of oil, gas, sulphur, or other minerals,
982	982	that is built for exclusive use outside this state and that
983	983	is, on completion, removed forthwith from this state.
984	984	The delivery of items exempted by this subdivision to
985	985	the purchaser or lessee in this state does not disqualify the
986	986	purchaser or lessee from the exemption if the property is
987	987	removed from the state by any means, including by the use of
988	988	the purchaser's or lessee's own facilities.
989	989	The shipment to a place in this state of equipment
990	990	exempted by this subdivision for further assembly or
991	991	fabrication does not disqualify the purchaser or lessee from
992	992	the exemption if on completion of the further assembly or
993	993	fabrication the equipment is removed forthwith from this
994	994	state. This subdivision applies to a sale that may occur when
995	995	the equipment exempted is further assembled or fabricated if
996	996	on completion the equipment is removed forthwith from this
997	997	state.
998	998	(45) The gross receipts derived from all bingo games
999	999	and operations that are conducted in compliance with validly
1000	1000	enacted legislation authorizing the conduct of such games and
1001	1001	operations, and which comply with the distribution
1002	1002	requirements of the applicable local laws; provided that the
1003	1003	exemption from sales taxation granted by this subdivision
1004	1004	shall apply only to gross receipts taxable under subdivision
1005	1005	(2) of Section 40-23-2. It is further provided that this
1006	1006	477
1007	1007	478
1008	1008	479
1009	1009	480
1010	1010	481
1011	1011	482
1012	1012	483
1013	1013	484
1014	1014	485
1015	1015	486
1016	1016	487
1017	1017	488
1018	1018	489
1019	1019	490
1020	1020	491
1021	1021	492
1022	1022	493
1023	1023	494
1024	1024	495
1025	1025	496
1026	1026	497
1027	1027	498
1028	1028	499
1029	1029	500
1030	1030	501
1031	1031	502
1032	1032	503
1033	1033	504 HB330 INTRODUCEDHB330 INTRODUCED
1034	1034	Page 19
1035	1035	exemption shall not apply to any gross receipts from the sale
1036	1036	of tangible personal property, such as concessions, novelties,
1037	1037	food, beverages, etc. The exemption provided for in this
1038	1038	section shall be limited to those games and operations by
1039	1039	organizations that have qualified for exemption under the
1040	1040	provisions of 26 U.S.C. § 501 (c) (3), (4), (7), (8), (10), or
1041	1041	(19), or which are defined in 26 U.S.C. § 501(d).
1042	1042	(46) The gross receipts derived from the sale or sales
1043	1043	of fruit or other agricultural products by the person or
1044	1044	company, as defined in Section 40-23-1, that planted or
1045	1045	cultivated and harvested the fruit or agricultural product,
1046	1046	when the land is owned or leased by the seller.
1047	1047	(47) The gross receipts derived from the sale or sales
1048	1048	of all domestically mined or produced coal, coke, and coke
1049	1049	by-products used in cogeneration plants.
1050	1050	(48) The gross receipts from the sale or sales of
1051	1051	metal, other than gold or silver, when such metal is purchased
1052	1052	for the purpose of transferring such metal to an investment
1053	1053	trust in exchange for shares or other units, each of which are
1054	1054	both publicly traded and represent fractional undivided
1055	1055	beneficial interests in the trust's net assets, including
1056	1056	metal stored in warehouses located in this state, as well as
1057	1057	the gross proceeds from the sale or other transfer of such
1058	1058	metal to or from the investment trust in exchange for shares
1059	1059	or other units that are publicly traded and represent
1060	1060	fractional undivided beneficial interests in the trust's net
1061	1061	assets but not to the extent that metal is transferred to or
1062	1062	from the investment trust in exchange for consideration other
1063	1063	505
1064	1064	506
1065	1065	507
1066	1066	508
1067	1067	509
1068	1068	510
1069	1069	511
1070	1070	512
1071	1071	513
1072	1072	514
1073	1073	515
1074	1074	516
1075	1075	517
1076	1076	518
1077	1077	519
1078	1078	520
1079	1079	521
1080	1080	522
1081	1081	523
1082	1082	524
1083	1083	525
1084	1084	526
1085	1085	527
1086	1086	528
1087	1087	529
1088	1088	530
1089	1089	531
1090	1090	532 HB330 INTRODUCEDHB330 INTRODUCED
1091	1091	Page 20
1092	1092	than such publicly traded shares or other units. For purposes
1093	1093	of this subdivision, the term "metals" includes, but is not
1094	1094	limited to, copper, aluminum, nickel, zinc, tin, lead, and
1095	1095	other similar metals typically used in commercial and
1096	1096	industrial applications.
1097	1097	(49)a. For the period commencing on October 1, 2012,
1098	1098	and ending May 30, 2027, the gross receipts from the sale of
1099	1099	parts, components, and systems that become a part of a fixed
1100	1100	or rotary wing military aircraft or certified transport
1101	1101	category aircraft that undergoes conversion, reconfiguration,
1102	1102	or general maintenance so long as the address of the aircraft
1103	1103	for FAA registration is not in the state; provided, however,
1104	1104	that this exemption shall not apply to a local sales tax
1105	1105	unless previously exempted by local law or approved by
1106	1106	resolution of the local governing body.
1107	1107	b. The exemption authorized by this subdivision shall
1108	1108	not be available for sales of parts, components, or systems
1109	1109	for new contracts or projects entered into after May 30, 2027,
1110	1110	unless the Legislature enacts legislation to continue or
1111	1111	reinstate the exemption for new contracts or projects after
1112	1112	that date. No action or inaction on the part of the
1113	1113	Legislature shall reduce, suspend, or disqualify sales of
1114	1114	parts, components, or systems from the exemption in any past
1115	1115	year or future years until May 30, 2030, with respect to
1116	1116	contracts or projects entered into on or before May 30, 2027;
1117	1117	it being the sole intent that failure of the Legislature to
1118	1118	enact legislation to reinstate the exemption for new contracts
1119	1119	or projects after May 30, 2027, shall affect only the
1120	1120	533
1121	1121	534
1122	1122	535
1123	1123	536
1124	1124	537
1125	1125	538
1126	1126	539
1127	1127	540
1128	1128	541
1129	1129	542
1130	1130	543
1131	1131	544
1132	1132	545
1133	1133	546
1134	1134	547
1135	1135	548
1136	1136	549
1137	1137	550
1138	1138	551
1139	1139	552
1140	1140	553
1141	1141	554
1142	1142	555
1143	1143	556
1144	1144	557
1145	1145	558
1146	1146	559
1147	1147	560 HB330 INTRODUCEDHB330 INTRODUCED
1148	1148	Page 21
1149	1149	availability of the exemption to new contracts and projects
1150	1150	after that date and shall not affect availability of the
1151	1151	exemption for contracts or projects entered into on or before
1152	1152	May 30, 2027, for which the exemption shall be available until
1153	1153	May 30, 2030.
1154	1154	(50) The gross proceeds from the sale or sales within
1155	1155	school buildings of lunches to pupils of kindergarten,
1156	1156	grammar, and high schools, either public or private, that are
1157	1157	not sold for profit.
1158	1158	(51) The gross proceeds of services provided by
1159	1159	photographers, including, but not limited to, sitting fees and
1160	1160	consultation fees, even when provided as part of a transaction
1161	1161	ultimately involving the sale of one or more photographs, so
1162	1162	long as the exempt services are separately stated to the
1163	1163	customer on a bill of sale, invoice, or like memorialization
1164	1164	of the transaction. For transactions occurring before October
1165	1165	1, 2017, neither the Department of Revenue nor local tax
1166	1166	officials may seek payment for sales tax not collected. With
1167	1167	regard to such transactions in which sales tax was collected
1168	1168	and remitted on services provided by photographers, neither
1169	1169	the taxpayer nor the entity remitting sales tax shall have the
1170	1170	right to seek refund of such tax.
1171	1171	(52) a. For the period commencing on June 1, 2018, and
1172	1172	ending 10 years thereafter, unless extended by an act of the
1173	1173	Legislature, the gross proceeds of sales of bullion or money,
1174	1174	as defined in Section 40-1-1(7).
1175	1175	b. For purposes of this subdivision, the following
1176	1176	words or terms shall be defined and interpreted as follows:
1177	1177	561
1178	1178	562
1179	1179	563
1180	1180	564
1181	1181	565
1182	1182	566
1183	1183	567
1184	1184	568
1185	1185	569
1186	1186	570
1187	1187	571
1188	1188	572
1189	1189	573
1190	1190	574
1191	1191	575
1192	1192	576
1193	1193	577
1194	1194	578
1195	1195	579
1196	1196	580
1197	1197	581
1198	1198	582
1199	1199	583
1200	1200	584
1201	1201	585
1202	1202	586
1203	1203	587
1204	1204	588 HB330 INTRODUCEDHB330 INTRODUCED
1205	1205	Page 22
1206	1206	1. Bullion. Gold, silver, platinum, palladium, or a
1207	1207	combination of each precious metal, that has gone through a
1208	1208	refining process and for which the item's value depends on its
1209	1209	mass and purity, and not on its form, numismatic value, or
1210	1210	other value. The term includes bullion in the form of bars,
1211	1211	ingots, rounds, or coins that meet the requirements set forth
1212	1212	above. Qualifying bullion may contain other metals or
1213	1213	substances, provided that the other substances are minimal in
1214	1214	value compared with the value of the gold, silver, platinum,
1215	1215	or palladium and the other substances do not add value to the
1216	1216	item. For purposes of this subparagraph, "gold, silver,
1217	1217	platinum, or palladium" does not include jewelry or works of
1218	1218	art.
1219	1219	2. Mass. An item's mass is its weight in precious
1220	1220	metal.
1221	1221	3. Numismatic Value. An external value above and beyond
1222	1222	the base value of the underlying precious metal, due to the
1223	1223	item's rarity, condition, age, or other external factor.
1224	1224	4. Purity. An item's purity is the proportion of
1225	1225	precious metal contained within.
1226	1226	c. In order for bullion to qualify for the sales tax
1227	1227	exemption, gold, silver, platinum, and palladium items must
1228	1228	meet all of the following requirements:
1229	1229	1. Must be refined.
1230	1230	2. Must contain at least 80 percent gold, silver,
1231	1231	platinum, or palladium or some combination of these metals.
1232	1232	3. The sales price of the item must fluctuate with and
1233	1233	depend on the market price of the underlying precious metal,
1234	1234	589
1235	1235	590
1236	1236	591
1237	1237	592
1238	1238	593
1239	1239	594
1240	1240	595
1241	1241	596
1242	1242	597
1243	1243	598
1244	1244	599
1245	1245	600
1246	1246	601
1247	1247	602
1248	1248	603
1249	1249	604
1250	1250	605
1251	1251	606
1252	1252	607
1253	1253	608
1254	1254	609
1255	1255	610
1256	1256	611
1257	1257	612
1258	1258	613
1259	1259	614
1260	1260	615
1261	1261	616 HB330 INTRODUCEDHB330 INTRODUCED
1262	1262	Page 23
1263	1263	and not on the item's rarity, condition, age, or other
1264	1264	external factor.
1265	1265	(53) a. The gross proceeds of the initial retail sales
1266	1266	of adaptive equipment that is permanently affixed to a motor
1267	1267	vehicle.
1268	1268	b. For the purposes of this subdivision, the following
1269	1269	words or terms shall be defined and interpreted as follows:
1270	1270	1. Adaptive Equipment. Equipment not generally used by
1271	1271	persons with normal mobility that is appropriate for use in a
1272	1272	motor vehicle and that is not normally provided by a motor
1273	1273	vehicle manufacturer.
1274	1274	2. Motor Vehicle. A vehicle as defined in Section
1275	1275	40-12-240.
1276	1276	3. Motor Vehicle Manufacturer. Every person engaged in
1277	1277	the business of constructing or assembling vehicles or
1278	1278	manufactured homes.
1279	1279	c. In order to qualify for the exemption provided for
1280	1280	herein, the adaptive equipment must be separately stated to
1281	1281	the customer on a bill of sale, invoice, or like
1282	1282	memorialization of the transaction.
1283	1283	(54) For the period commencing on October 1, 2022, and
1284	1284	ending September 30, 2027, unless extended by an act of the
1285	1285	Legislature, the gross receipts derived from the sale of
1286	1286	producer value added agricultural products when the sale is
1287	1287	made by the producer or by the producer's immediate family, or
1288	1288	for the producer by the producer's employees.
1289	1289	(55) The gross proceeds from the sale or sales of
1290	1290	fencing materials such as t-posts, wood posts, barbed wire,
1291	1291	617
1292	1292	618
1293	1293	619
1294	1294	620
1295	1295	621
1296	1296	622
1297	1297	623
1298	1298	624
1299	1299	625
1300	1300	626
1301	1301	627
1302	1302	628
1303	1303	629
1304	1304	630
1305	1305	631
1306	1306	632
1307	1307	633
1308	1308	634
1309	1309	635
1310	1310	636
1311	1311	637
1312	1312	638
1313	1313	639
1314	1314	640
1315	1315	641
1316	1316	642
1317	1317	643
1318	1318	644 HB330 INTRODUCEDHB330 INTRODUCED
1319	1319	Page 24
1320	1320	net wire, smooth wire, standard metal gates, and other like
1321	1321	materials used for the purpose of fencing in agriculture
1322	1322	livestock applications.
1323	1323	(b) Any violation of any provision of this section
1324	1324	shall be punishable in a court of competent jurisdiction by a
1325	1325	fine of not less than five hundred dollars ($500) and no more
1326	1326	than two thousand dollars ($2,000) and imprisonment of not
1327	1327	less than six months nor more than one year in the county
1328	1328	jail."
1329	1329	Section 2. This act shall become effective on the first
1330	1330	day of the third month following its passage and approval by
1331	1331	the Governor, or its otherwise becoming law.
1332	1332	645
1333	1333	646
1334	1334	647
1335	1335	648
1336	1336	649
1337	1337	650
1338	1338	651
1339	1339	652
1340	1340	653
1341	1341	654
1342	1342	655
1343	1343	656