HB330INTRODUCED
Page 0
ND7L8J-1
By Representatives Crawford, Whitt, Standridge, Ingram,
Pettus, Rehm, Smith, Brown, Hammett
RFD: Ways and Means Education
First Read: 18-Apr-23
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6 ND7L8J-1 04/12/2023 ZAK (L)cr 2023-1486
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SYNOPSIS:
Under existing law, the gross proceeds from the
sale of certain items are exempted from the tax levied
on the sale of items in the state.
This bill would exempt the gross proceeds from
the sale of materials purchased to be used as fencing
for agriculture livestock purposes from the state's
sales and use tax.
A BILL
TO BE ENTITLED
AN ACT
Relating to sales tax exemptions; to amend Section
40-23-4, Code of Alabama 1975, as last amended by Acts
2022-199, 2022-291, 2022-293, and 2022-373, 2022 Regular
Session, to exempt from sales tax the gross proceeds from the
sale of materials to be used as fencing in agriculture
livestock applications.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-23-4, Code of Alabama 1975, as
last amended by Acts 2022-199, 2022-291, 2022-293, and
2022-373, 2022 Regular Session, is amended to read as follows:
"§40-23-4
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(a) There are exempted from the provisions of this
division and from the computation of the amount of the tax
levied, assessed, or payable under this division the
following:
(1) The gross proceeds of the sales of lubricating oil and
gasoline as defined in Sections 40-17-30 and 40-17-170 and the
gross proceeds from those sales of lubricating oil destined
for out-of-state use which are transacted in a manner whereby
an out-of-state purchaser takes delivery of such oil at a
distributor's plant within this state and transports it
out-of-state, which are otherwise taxed.
(2) The gross proceeds of the sale, or sales, of
fertilizer when used for agricultural purposes. The word
"fertilizer" shall not be construed to include cottonseed
meal, when not in combination with other materials.
(3) The gross proceeds of the sale, or sales, of seeds
for planting purposes and baby chicks and poults. Nothing
herein shall be construed to exempt or exclude from the
computation of the tax levied, assessed, or payable, the gross
proceeds of the sale or sales of plants, seedlings, nursery
stock, or floral products.
(4) The gross proceeds of sales of insecticides and
fungicides when used for agricultural purposes or when used by
persons properly permitted by the Department of Agriculture
and Industries or any applicable local or state governmental
authority for structural pest control work and feed for
livestock and poultry, but not including prepared food for
dogs and cats.
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(5) The gross proceeds of sales of all livestock by
whomsoever sold, and also the gross proceeds of poultry and
other products of the farm, dairy, grove, or garden, when in
the original state of production or condition of preparation
for sale, when such sale or sales are made by the producer or
members of the producer's immediate family or for the producer
by those employed by the producer to assist in the production
thereof. Nothing herein shall be construed to exempt or
exclude from the measure or computation of the tax levied,
assessed, or payable hereunder, the gross proceeds of sales of
poultry or poultry products when not products of the farm.
(6) Cottonseed meal exchanged for cottonseed at or by
cotton gins.
(7) The gross receipts from the business on which, or
for engaging in which, a license or privilege tax is levied by
or under Sections 40-21-50, 40-21-53, and 40-21-56 through
40-21-60; provided, that nothing contained in this subdivision
shall be construed to exempt or relieve the person or persons
operating the business enumerated in these sections from the
payments of the tax levied by this division upon or measured
by the gross proceeds of sales of any tangible personal
property, except gas and water, the gross receipts from the
sale of which are the measure of the tax levied by Section
40-21-50, merchandise or other tangible commodities sold at
retail by the persons, unless the gross proceeds of sale
thereof are otherwise specifically exempted by this division.
(8) The gross proceeds of sales or gross receipts of or
by any person, firm, or corporation, from the sale of
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transportation, gas, water, or electricity, of the kinds and
natures, the rates and charges for which, when sold by public
utilities, are customarily fixed and determined by the Public
Service Commission of Alabama or like regulatory bodies.
(9) The gross proceeds of the sale, or sales of wood
residue, coal, or coke to manufacturers, electric power
companies, and transportation companies for use or consumption
in the production of by-products, or the generation of heat or
power used in manufacturing tangible personal property for
sale, for the generation of electric power or energy for use
in manufacturing tangible personal property for sale or for
resale, or for the generation of motive power for
transportation.
(10) The gross proceeds from the sale or sales of fuel
and supplies for use or consumption aboard ships, vessels,
towing vessels, or barges, or drilling ships, rigs or barges,
or seismic or geophysical vessels, or other watercraft (herein
for purposes of this exemption being referred to as "vessels")
engaged in foreign or international commerce or in interstate
commerce; provided, that nothing in this division shall be
construed to exempt or exclude from the measure of the tax
herein levied the gross proceeds of sale or sales of material
and supplies to any person for use in fulfilling a contract
for the painting, repair, or reconditioning of vessels,
barges, ships, other watercraft, and commercial fishing
vessels of over five tons load displacement as registered with
the U.S. Coast Guard and licensed by the State of Alabama
Department of Conservation and Natural Resources.
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For purposes of this subdivision, it shall be presumed
that vessels engaged in the transportation of cargo between
ports in the State of Alabama and ports in foreign countries
or possessions or territories of the United States or between
ports in the State of Alabama and ports in other states are
engaged in foreign or international commerce or interstate
commerce, as the case may be. For the purposes of this
subdivision, the engaging in foreign or international commerce
or interstate commerce shall not require that the vessel
involved deliver cargo to or receive cargo from a port in the
State of Alabama. For purposes of this subdivision, vessels
carrying passengers for hire, and no cargo, between ports in
the State of Alabama and ports in foreign countries or
possessions or territories of the United States or between
ports in the State of Alabama and ports in other states shall
be engaged in foreign or international commerce or interstate
commerce, as the case may be, if, and only if, both of the
following conditions are met: (i) The vessel in question is a
vessel of at least 100 gross tons; and (ii) the vessel in
question has an unexpired certificate of inspection issued by
the United States Coast Guard or by the proper authority of a
foreign country for a foreign vessel, which certificate is
recognized as acceptable under the laws of the United States.
Vessels that are engaged in foreign or international commerce
or interstate commerce shall be deemed for the purposes of
this subdivision to remain in such commerce while awaiting or
under repair in a port of the State of Alabama if the vessel
returns after such repairs are completed to engaging in
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foreign or international commerce or interstate commerce. For
purposes of this subdivision, seismic or geophysical vessels
which are engaged either in seismic or geophysical tests or
evaluations exclusively in offshore federal waters or in
traveling to or from conducting such tests or evaluations
shall be deemed to be engaged in international or foreign
commerce. For purposes of this subdivision, proof that fuel
and supplies purchased are for use or consumption aboard
vessels engaged in foreign or international commerce or in
interstate commerce may be accomplished by the merchant or
seller securing the duly signed certificate of the vessel
owner, operator, or captain or such person's respective agent,
on a form prescribed by the department, that the fuel and
supplies purchased are for use or consumption aboard vessels
engaged in foreign or international commerce or in interstate
commerce. Any person filing a false certificate shall be
guilty of a misdemeanor and upon conviction shall be fined not
less than twenty-five dollars ($25) nor more than five hundred
dollars ($500) for each offense. Each false certificate filed
shall constitute a separate offense. Any person filing a false
certificate shall be liable to the department for all taxes
imposed by this division upon the merchant or seller, together
with any interest or penalties thereon, by reason of the sale
or sales of fuel and supplies applicable to the false
certificate. If a merchant or seller of fuel and supplies
secures the certificate herein mentioned, properly completed,
the merchant or seller shall not be liable for the taxes
imposed by this division, if the merchant or seller had no
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knowledge that the certificate was false when it was filed
with the merchant or seller.
(11) The gross proceeds of sales of tangible personal
property to the State of Alabama, to the counties within the
state and to incorporated municipalities of the State of
Alabama.
(12) The gross proceeds of the sale or sales of
railroad cars, vessels, barges, and commercial fishing vessels
of over five tons load displacement as registered with the
U.S. Coast Guard and licensed by the State of Alabama
Department of Conservation and Natural Resources, when sold by
the manufacturers or builders thereof.
(13) The gross proceeds of the sale or sales of
materials, equipment, and machinery that, at any time, enter
into and become a component part of ships, vessels, towing
vessels or barges, or drilling ships, rigs or barges, or
seismic or geophysical vessels, other watercraft and
commercial fishing vessels of over five tons load displacement
as registered with the U.S. Coast Guard and licensed by the
State of Alabama Department of Conservation and Natural
Resources. Additionally, the gross proceeds from the sale or
sales of lifeboats, personal flotation devices, ring life
buoys, survival craft equipment, distress signals, EPIRB's,
fire extinguishers, injury placards, waste management plans
and logs, marine sanitation devices, navigation rulebooks,
navigation lights, sound signals, navigation day shapes, oil
placard cards, garbage placards, FCC SSL, stability
instructions, first aid equipment, compasses, anchor and radar
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reflectors, general alarm systems, bilge pumps, piping, and
discharge and electronic position fixing devices which are
used on the aforementioned watercraft.
(14) The gross proceeds of the sale or sales of fuel
oil purchased as fuel for kiln use in manufacturing
establishments.
(15) The gross proceeds of the sale or sales of
tangible personal property to county and city school boards
within the State of Alabama, independent school boards within
the State of Alabama, all educational institutions and
agencies of the State of Alabama, the counties within the
state, or any incorporated municipalities of the State of
Alabama, and private educational institutions operating within
the State of Alabama offering conventional and traditional
courses of study, such as those offered by public schools,
colleges, or universities within the State of Alabama; but not
including nurseries, day care centers, and home schools.
(16) The gross proceeds from the sale of all devices or
facilities, and all identifiable components thereof, or
materials for use therein, acquired primarily for the control,
reduction, or elimination of air or water pollution and the
gross proceeds from the sale of all identifiable components
of, or materials used or intended for use in, structures built
primarily for the control, reduction, or elimination of air
and water pollution.
(17) The gross proceeds of sales of tangible personal
property or the gross receipts of any business which the state
is prohibited from taxing under the Constitution or laws of
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the United States or under the Constitution of this state.
(18) When dealers or distributors use parts taken from
stocks owned by them in making repairs without charge for the
parts to the owner of the property repaired pursuant to
warranty agreements entered into by manufacturers, such use
shall not constitute taxable sales to the manufacturers,
distributors, or to the dealers, under this division or under
any county sales tax law.
(19) The gross proceeds received from the sale or
furnishing of food, including potato chips, candy, fruit and
similar items, soft drinks, tobacco products, and stationery
and other similar or related articles by hospital canteens
operated by Alabama state hospitals at Bryce Hospital and
Partlow State School for Mental Deficients at Tuscaloosa,
Alabama, and Searcy Hospital at Mt. Vernon, Alabama, for the
benefit of the patients therein.
(20) The gross proceeds of the sale, or sales, of
wrapping paper and other wrapping materials when used in
preparing poultry or poultry products for delivery, shipment,
or sale by the producer, processor, packer, or seller of such
poultry or poultry products, including pallets used in
shipping poultry and egg products, paper or other materials
used for lining boxes or other containers in which poultry or
poultry products are packed together with any other materials
placed in such containers for the delivery, shipment, or sale
of poultry or poultry products.
(21) The gross proceeds of the sales of all
antibiotics, hormones and hormone preparations, drugs,
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medicines or medications, vitamins, minerals or other
nutrients, and all other feed ingredients including
concentrates, supplements, and other feed ingredients when
such substances are used as ingredients in mixing and
preparing feed for fish raised to be sold on a commercial
basis, livestock, and poultry. Such exemption herein granted
shall be in addition to exemptions now provided by law for
feed for fish raised to be sold on a commercial basis,
livestock, and poultry, but not including prepared foods for
dogs or cats.
(22) The gross proceeds of the sale, or sales, of
seedlings, plants, shoots, and slips which are to be used for
planting vegetable gardens or truck farms and other
agricultural purposes. Nothing herein shall be construed to
exempt, or exclude from the computation of the tax levied,
assessed, or payable, the gross proceeds of the sale, or the
use of plants, seedlings, shoots, slips, nursery stock, and
floral products, except as hereinabove exempted.
(23) The gross proceeds of the sale, or sales, of
fabricated steel tube sections, when produced and fabricated
in this state by any person, firm, or corporation for any
vehicular tunnel for highway vehicular traffic, when sold by
the manufacturer or fabricator thereof, and also the gross
proceeds of the sale, or sales, of steel which enters into and
becomes a component part of such fabricated steel tube
sections of said tunnel.
(24) The gross proceeds from sales of admissions to any
theatrical production, symphonic or other orchestral concert,
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ballet, or opera production when the concert or production is
presented by any society, association, guild, or workshop
group, organized within this state, whose members or some of
whose members regularly and actively participate in the
concerts or productions for the purposes of providing a
creative outlet for the cultural and educational interests of
its members, and of promoting such interests for the
betterment of the community by presenting the productions to
the general public for an admission charge. The employment of
a paid director or conductor to assist in any such
presentation described in this subdivision shall not be
construed to prohibit the exemptions herein provided.
(25) The gross proceeds of sales of "herbicides" for
agricultural uses by whomsoever sold. The term herbicides, as
used in this subdivision, means any substance or mixture of
substances intended to prevent, destroy, repel, or retard the
growth of weeds or plants. The term includes preemergence
herbicides, postemergence herbicides, lay-by herbicides,
pasture herbicides, defoliant herbicides, and desiccant
herbicides.
(26) The Alabama Chapter of the Cystic Fibrosis
Research Foundation and the Jefferson Tuberculosis Sanatorium
and any of their departments or agencies, heretofore or
hereafter organized and existing in good faith in the State of
Alabama for purposes other than for pecuniary gain and not for
individual profit, shall be exempted from the computation of
the tax on the gross proceeds of all sales levied, assessed,
or payable.
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(27) The gross proceeds from the sale or sales of fuel
for use or consumption aboard commercial fishing vessels are
exempt from the computation of all sales taxes levied,
assessed, or payable under this division or levied under any
county or municipal sales tax law.
(28) The gross proceeds from the sales of rope, fishing
nets, tools, or any substitute used directly in the process of
commercial fishing by a holder of a commercial license issued
pursuant to Chapter 12 of Title 9.
(29) The gross proceeds of sales of sawdust, wood
shavings, wood chips, and other like materials sold for use as
chicken litter by poultry producers and poultry processors.
(30) The gross proceeds of the sales of all
antibiotics, hormones and hormone preparations, drugs,
medicines, and other medications including serums and
vaccines, vitamins, minerals, or other nutrients for use in
the production and growing of fish, livestock, and poultry by
whomsoever sold. The exemption herein granted shall be in
addition to the exemption provided by law for feed for fish,
livestock, and poultry, and in addition to the exemptions
provided by law for the above-enumerated substances and
products when mixed and used as ingredients in fish,
livestock, and poultry feed.
(31) The gross proceeds of the sale or sales of all
medicines prescribed by physicians for persons who are 65
years of age or older, and when the prescriptions are filled
by licensed pharmacists, shall be exempted under this division
or under any county or municipal sales tax law. The exemption
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provided in this section shall not apply to any medicine
purchased in any manner other than as is herein provided.
For the purposes of this subdivision, proof of age may
be accomplished by filing with the dispensing pharmacist any
one or more of the following documents:
a. The name and claim number as shown on a Medicare
card issued by the United States Social Security
Administration.
b. A certificate executed by any adult person having
knowledge of the fact that the person for whom the medicine
was prescribed is not less than 65 years of age.
c. An affidavit executed by any adult person having
knowledge of the fact that the person for whom the medicine
was prescribed is not less than 65 years of age.
For the purposes of this subdivision, any person filing
a false proof of age shall be guilty of a misdemeanor and upon
conviction thereof shall be punished by a fine of one hundred
dollars ($100).
(32) There shall be exempted from the tax levied by
this division the gross receipts of sales of grass sod of all
kinds and character when in the original state of production
or condition of preparation for sale, when the sales are made
by the producer or members of the producer's family or for the
producer by those employed by the producer to assist in the
production thereof; provided, that nothing herein shall be
construed to exempt sales of sod by a person engaged in the
business of selling plants, seedlings, nursery stock, or
floral products.
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(33) The gross receipts of sales of the following items
or materials that are necessary in the farm-to-market
production of tomatoes when such items or materials are used
by the producer or members of the producer's family or for the
producer by those employed by the producer to assist in the
production thereof: Twine for tying tomatoes, tomato stakes,
field boxes (wooden boxes used to take tomatoes from the
fields to shed), and tomato boxes used in shipments to
customers.
(34) The gross proceeds from the sale of liquefied
petroleum gas or natural gas sold to be used for agricultural
purposes.
(35) The gross receipts of sales from state nurseries
of forest tree seedlings.
(36) The gross receipts of sales of forest tree seed by
the state.
(37) The gross receipts of sales of Lespedeza bicolor
and other species of perennial plant seed and seedlings sold
for wildlife and game food production purposes by the state.
(38) The gross receipts of any aircraft manufactured,
sold, and delivered in this state if the aircraft are not
permanently domiciled in Alabama and are removed to another
state.
(39) The gross proceeds from the sale or sales of all
diesel fuel used for off-highway agricultural purposes.
(40) The gross proceeds from sales of admissions to any
sporting event that:
a. Takes place in the State of Alabama on or after
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January 1, 1984, regardless of when such sales occur; and
b. Is hosted by a not-for-profit corporation organized
and existing under the laws of the State of Alabama; and
c. Determines a national championship of a national
organization, including, but not limited to, the Professional
Golfers Association of America, the Tournament Players
Association, the United States Golf Association, the United
States Tennis Association, and the National Collegiate
Athletic Association; and
d. Has not been held in the State of Alabama on more
than one prior occasion, provided, however, that for such
purpose the Professional Golfers Association Championship, the
United States Open Golf Championship, the United States
Amateur Golf Championship of the United States Golf
Association, and the United States Open Tennis Championship
shall each be treated as a separate event.
(41) The gross receipts from the sale of any aircraft
and replacement parts, components, systems, supplies, and
sundries affixed or used on the aircraft and ground support
equipment and vehicles used by or for the aircraft to or by a
certificated or licensed air carrier with a hub operation
within this state, for use in conducting intrastate,
interstate, or foreign commerce for transporting people or
property by air. For the purpose of this subdivision, the
words "hub operation within this state" shall be construed to
have both of the following criteria:
a. There originates from the location 15 or more flight
departures and five or more different first-stop destinations
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five days per week for six or more months during the calendar
year.
b. Passengers or property or both are regularly
exchanged at the location between flights of the same or a
different certificated or licensed air carrier.
(42) The gross receipts from the sale of hot or cold
food and beverage products sold to or by a certificated or
licensed air carrier with a hub operation within this state,
for use in conducting intrastate, interstate, or foreign
commerce for transporting people or property by air. For the
purpose of this subdivision, the words "hub operation within
this state" shall be construed to have all of the following
criteria:
a. There originates from the location 15 or more flight
departures and five or more different first-stop destinations
five days per week for six or more months during the calendar
year.
b. Passengers or property or both are regularly
exchanged at the location between flights of the same or a
different certificated or licensed air carrier.
(43) The gross receipts from the sale of any aviation
jet fuel to a certificated or licensed air carrier purchased
for use in scheduled all-cargo operations being conducted on
international flights or in international commerce. For
purposes of this subdivision, the following words or terms
shall be defined and interpreted as follows:
a. Air Carrier. Any person, firm, corporation, or
entity undertaking by any means, directly or indirectly, to
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provide air transportation.
b. All-Cargo Operations. Any flight conducted by an air
carrier for compensation or hire other than a passenger
carrying flight, except passengers as specified in 14 C.F.R. §
121.583(a) or 14 C.F.R. § 135.85, as amended.
c. International Commerce. Any air carrier engaged in
all-cargo operations transporting goods for compensation or
hire on international flights.
d. International Flights. Any air carrier conducting
scheduled all-cargo operations between any point within the 50
states of the United States and the District of Columbia and
any point outside the 50 states of the United States and the
District of Columbia, including any interim stops within the
United States so long as the ultimate origin or destination of
the aircraft is outside the United States and the District of
Columbia.
(44) The gross proceeds of the sale or sales of the
following:
a. Drill pipe, casing, tubing, and other pipe used for
the exploration for or production of oil, gas, sulphur, or
other minerals in offshore federal waters.
b. Tangible personal property exclusively used for the
exploration for or production of oil, gas, sulphur, or other
minerals in offshore federal waters.
c. Fuel and supplies for use or consumption aboard
boats, ships, aircraft, and towing vessels when used
exclusively in transporting persons or property between a
point in Alabama and a point or points in offshore federal
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waters for the exploration for or production of oil, gas,
sulphur, or other minerals in offshore federal waters.
d. Drilling equipment that is used for the exploration
for or production of oil, gas, sulphur, or other minerals,
that is built for exclusive use outside this state and that
is, on completion, removed forthwith from this state.
The delivery of items exempted by this subdivision to
the purchaser or lessee in this state does not disqualify the
purchaser or lessee from the exemption if the property is
removed from the state by any means, including by the use of
the purchaser's or lessee's own facilities.
The shipment to a place in this state of equipment
exempted by this subdivision for further assembly or
fabrication does not disqualify the purchaser or lessee from
the exemption if on completion of the further assembly or
fabrication the equipment is removed forthwith from this
state. This subdivision applies to a sale that may occur when
the equipment exempted is further assembled or fabricated if
on completion the equipment is removed forthwith from this
state.
(45) The gross receipts derived from all bingo games
and operations that are conducted in compliance with validly
enacted legislation authorizing the conduct of such games and
operations, and which comply with the distribution
requirements of the applicable local laws; provided that the
exemption from sales taxation granted by this subdivision
shall apply only to gross receipts taxable under subdivision
(2) of Section 40-23-2. It is further provided that this
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exemption shall not apply to any gross receipts from the sale
of tangible personal property, such as concessions, novelties,
food, beverages, etc. The exemption provided for in this
section shall be limited to those games and operations by
organizations that have qualified for exemption under the
provisions of 26 U.S.C. § 501 (c) (3), (4), (7), (8), (10), or
(19), or which are defined in 26 U.S.C. § 501(d).
(46) The gross receipts derived from the sale or sales
of fruit or other agricultural products by the person or
company, as defined in Section 40-23-1, that planted or
cultivated and harvested the fruit or agricultural product,
when the land is owned or leased by the seller.
(47) The gross receipts derived from the sale or sales
of all domestically mined or produced coal, coke, and coke
by-products used in cogeneration plants.
(48) The gross receipts from the sale or sales of
metal, other than gold or silver, when such metal is purchased
for the purpose of transferring such metal to an investment
trust in exchange for shares or other units, each of which are
both publicly traded and represent fractional undivided
beneficial interests in the trust's net assets, including
metal stored in warehouses located in this state, as well as
the gross proceeds from the sale or other transfer of such
metal to or from the investment trust in exchange for shares
or other units that are publicly traded and represent
fractional undivided beneficial interests in the trust's net
assets but not to the extent that metal is transferred to or
from the investment trust in exchange for consideration other
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than such publicly traded shares or other units. For purposes
of this subdivision, the term "metals" includes, but is not
limited to, copper, aluminum, nickel, zinc, tin, lead, and
other similar metals typically used in commercial and
industrial applications.
(49)a. For the period commencing on October 1, 2012,
and ending May 30, 2027, the gross receipts from the sale of
parts, components, and systems that become a part of a fixed
or rotary wing military aircraft or certified transport
category aircraft that undergoes conversion, reconfiguration,
or general maintenance so long as the address of the aircraft
for FAA registration is not in the state; provided, however,
that this exemption shall not apply to a local sales tax
unless previously exempted by local law or approved by
resolution of the local governing body.
b. The exemption authorized by this subdivision shall
not be available for sales of parts, components, or systems
for new contracts or projects entered into after May 30, 2027,
unless the Legislature enacts legislation to continue or
reinstate the exemption for new contracts or projects after
that date. No action or inaction on the part of the
Legislature shall reduce, suspend, or disqualify sales of
parts, components, or systems from the exemption in any past
year or future years until May 30, 2030, with respect to
contracts or projects entered into on or before May 30, 2027;
it being the sole intent that failure of the Legislature to
enact legislation to reinstate the exemption for new contracts
or projects after May 30, 2027, shall affect only the
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availability of the exemption to new contracts and projects
after that date and shall not affect availability of the
exemption for contracts or projects entered into on or before
May 30, 2027, for which the exemption shall be available until
May 30, 2030.
(50) The gross proceeds from the sale or sales within
school buildings of lunches to pupils of kindergarten,
grammar, and high schools, either public or private, that are
not sold for profit.
(51) The gross proceeds of services provided by
photographers, including, but not limited to, sitting fees and
consultation fees, even when provided as part of a transaction
ultimately involving the sale of one or more photographs, so
long as the exempt services are separately stated to the
customer on a bill of sale, invoice, or like memorialization
of the transaction. For transactions occurring before October
1, 2017, neither the Department of Revenue nor local tax
officials may seek payment for sales tax not collected. With
regard to such transactions in which sales tax was collected
and remitted on services provided by photographers, neither
the taxpayer nor the entity remitting sales tax shall have the
right to seek refund of such tax.
(52) a. For the period commencing on June 1, 2018, and
ending 10 years thereafter, unless extended by an act of the
Legislature, the gross proceeds of sales of bullion or money,
as defined in Section 40-1-1(7).
b. For purposes of this subdivision, the following
words or terms shall be defined and interpreted as follows:
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1. Bullion. Gold, silver, platinum, palladium, or a
combination of each precious metal, that has gone through a
refining process and for which the item's value depends on its
mass and purity, and not on its form, numismatic value, or
other value. The term includes bullion in the form of bars,
ingots, rounds, or coins that meet the requirements set forth
above. Qualifying bullion may contain other metals or
substances, provided that the other substances are minimal in
value compared with the value of the gold, silver, platinum,
or palladium and the other substances do not add value to the
item. For purposes of this subparagraph, "gold, silver,
platinum, or palladium" does not include jewelry or works of
art.
2. Mass. An item's mass is its weight in precious
metal.
3. Numismatic Value. An external value above and beyond
the base value of the underlying precious metal, due to the
item's rarity, condition, age, or other external factor.
4. Purity. An item's purity is the proportion of
precious metal contained within.
c. In order for bullion to qualify for the sales tax
exemption, gold, silver, platinum, and palladium items must
meet all of the following requirements:
1. Must be refined.
2. Must contain at least 80 percent gold, silver,
platinum, or palladium or some combination of these metals.
3. The sales price of the item must fluctuate with and
depend on the market price of the underlying precious metal,
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and not on the item's rarity, condition, age, or other
external factor.
(53) a. The gross proceeds of the initial retail sales
of adaptive equipment that is permanently affixed to a motor
vehicle.
b. For the purposes of this subdivision, the following
words or terms shall be defined and interpreted as follows:
1. Adaptive Equipment. Equipment not generally used by
persons with normal mobility that is appropriate for use in a
motor vehicle and that is not normally provided by a motor
vehicle manufacturer.
2. Motor Vehicle. A vehicle as defined in Section
40-12-240.
3. Motor Vehicle Manufacturer. Every person engaged in
the business of constructing or assembling vehicles or
manufactured homes.
c. In order to qualify for the exemption provided for
herein, the adaptive equipment must be separately stated to
the customer on a bill of sale, invoice, or like
memorialization of the transaction.
(54) For the period commencing on October 1, 2022, and
ending September 30, 2027, unless extended by an act of the
Legislature, the gross receipts derived from the sale of
producer value added agricultural products when the sale is
made by the producer or by the producer's immediate family, or
for the producer by the producer's employees.
(55) The gross proceeds from the sale or sales of
fencing materials such as t-posts, wood posts, barbed wire,
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net wire, smooth wire, standard metal gates, and other like
materials used for the purpose of fencing in agriculture
livestock applications.
(b) Any violation of any provision of this section
shall be punishable in a court of competent jurisdiction by a
fine of not less than five hundred dollars ($500) and no more
than two thousand dollars ($2,000) and imprisonment of not
less than six months nor more than one year in the county
jail."
Section 2. This act shall become effective on the first
day of the third month following its passage and approval by
the Governor, or its otherwise becoming law.
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