Alabama 2023 Regular Session

Alabama House Bill HB343 Compare Versions

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

Old	New	Differences
1	1	HB343INTRODUCED
2	2	Page 0
3	3	1G5HL3-1
4	4	By Representatives Chestnut, Lee, Lawrence, Sorrells, Daniels
5	5	RFD: Ways and Means Education
6	6	First Read: 18-Apr-23
7	7	1
8	8	2
9	9	3
10	10	4
11	11	5
12	12	6 1G5HL3-1 04/04/2023 DJ (F)RA 2023-1365
13	13	Page 1
14	14	SYNOPSIS:
15	15	Under existing law, certain aircraft parts,
16	16	components, and systems are exempt from sales tax.
17	17	This bill would revise this exemption to
18	18	remove the provisions regarding military and transport
19	19	aircraft and to remove the provision that aircraft must
20	20	be registered in another state.
21	21	A BILL
22	22	TO BE ENTITLED
23	23	AN ACT
24	24	Relating to sales tax; to amend Section 40-23-4, as
25	25	amended by Acts 2022-291, 2022-293, and 2022-373, 2022 Regular
26	26	Session, Code of Alabama 1975, to revise the sales tax
27	27	exemption for certain aircraft parts, components, and systems;
28	28	to remove the provisions regarding military and transport
29	29	aircraft; and to remove the provision that aircraft must be
30	30	registered in another state.
31	31	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
32	32	Section 1. Section 40-23-4, as amended by Acts
33	33	2022-291, 2022-293, and 2022-373 of the 2022 Regular Session,
34	34	Code of Alabama 1975, is amended to read as follows:
35	35	"§40-23-4
36	36	1
37	37	2
38	38	3
39	39	4
40	40	5
41	41	6
42	42	7
43	43	8
44	44	9
45	45	10
46	46	11
47	47	12
48	48	13
49	49	14
50	50	15
51	51	16
52	52	17
53	53	18
54	54	19
55	55	20
56	56	21
57	57	22
58	58	23
59	59	24
60	60	25
61	61	26
62	62	27
63	63	28 HB343 INTRODUCEDHB343 INTRODUCED
64	64	Page 2
65	65	(a) There are exempted from the provisions of this
66	66	division and from the computation of the amount of the tax
67	67	levied, assessed, or payable under this division the
68	68	following:
69	69	(1) The gross proceeds of the sales of lubricating oil
70	70	and gasoline as defined in Sections 40-17-30 and 40-17-170 and
71	71	the gross proceeds from those sales of lubricating oil
72	72	destined for out-of-state use which are transacted in a manner
73	73	whereby an out-of-state purchaser takes delivery of such oil
74	74	at a distributor's plant within this state and transports it
75	75	out-of-state, which are otherwise taxed.
76	76	(2) The gross proceeds of the sale, or sales, of
77	77	fertilizer when used for agricultural purposes. The word
78	78	"fertilizer" shall not be construed to include cottonseed
79	79	meal, when not in combination with other materials.
80	80	(3) The gross proceeds of the sale, or sales, of seeds
81	81	for planting purposes and baby chicks and poults. Nothing
82	82	herein shall be construed to exempt or exclude from the
83	83	computation of the tax levied, assessed, or payable, the gross
84	84	proceeds of the sale or sales of plants, seedlings, nursery
85	85	stock, or floral products.
86	86	(4) The gross proceeds of sales of insecticides and
87	87	fungicides when used for agricultural purposes or when used by
88	88	persons properly permitted by the Department of Agriculture
89	89	and Industries or any applicable local or state governmental
90	90	authority for structural pest control work and feed for
91	91	livestock and poultry, but not including prepared food for
92	92	dogs and cats.
93	93	29
94	94	30
95	95	31
96	96	32
97	97	33
98	98	34
99	99	35
100	100	36
101	101	37
102	102	38
103	103	39
104	104	40
105	105	41
106	106	42
107	107	43
108	108	44
109	109	45
110	110	46
111	111	47
112	112	48
113	113	49
114	114	50
115	115	51
116	116	52
117	117	53
118	118	54
119	119	55
120	120	56 HB343 INTRODUCEDHB343 INTRODUCED
121	121	Page 3
122	122	(5) The gross proceeds of sales of all livestock by
123	123	whomsoever sold, and also the gross proceeds of poultry and
124	124	other products of the farm, dairy, grove, or garden, when in
125	125	the original state of production or condition of preparation
126	126	for sale, when such sale or sales are made by the producer or
127	127	members of the producer's immediate family or for the producer
128	128	by those employed by the producer to assist in the production
129	129	thereof. Nothing herein shall be construed to exempt or
130	130	exclude from the measure or computation of the tax levied,
131	131	assessed, or payable hereunder, the gross proceeds of sales of
132	132	poultry or poultry products when not products of the farm.
133	133	(6) Cottonseed meal exchanged for cottonseed at or by
134	134	cotton gins.
135	135	(7) The gross receipts from the business on which, or
136	136	for engaging in which, a license or privilege tax is levied by
137	137	or under Sections 40-21-50, 40-21-53, and 40-21-56 through
138	138	40-21-60; provided, that nothing contained in this subdivision
139	139	shall be construed to exempt or relieve the person or persons
140	140	operating the business enumerated in these sections from the
141	141	payments of the tax levied by this division upon or measured
142	142	by the gross proceeds of sales of any tangible personal
143	143	property, except gas and water, the gross receipts from the
144	144	sale of which are the measure of the tax levied by Section
145	145	40-21-50, merchandise or other tangible commodities sold at
146	146	retail by the persons, unless the gross proceeds of sale
147	147	thereof are otherwise specifically exempted by this division.
148	148	(8) The gross proceeds of sales or gross receipts of or
149	149	by any person, firm, or corporation, from the sale of
150	150	57
151	151	58
152	152	59
153	153	60
154	154	61
155	155	62
156	156	63
157	157	64
158	158	65
159	159	66
160	160	67
161	161	68
162	162	69
163	163	70
164	164	71
165	165	72
166	166	73
167	167	74
168	168	75
169	169	76
170	170	77
171	171	78
172	172	79
173	173	80
174	174	81
175	175	82
176	176	83
177	177	84 HB343 INTRODUCEDHB343 INTRODUCED
178	178	Page 4
179	179	transportation, gas, water, or electricity, of the kinds and
180	180	natures, the rates and charges for which, when sold by public
181	181	utilities, are customarily fixed and determined by the Public
182	182	Service Commission of Alabama or like regulatory bodies.
183	183	(9) The gross proceeds of the sale, or sales of wood
184	184	residue, coal, or coke to manufacturers, electric power
185	185	companies, and transportation companies for use or consumption
186	186	in the production of by-products, or the generation of heat or
187	187	power used in manufacturing tangible personal property for
188	188	sale, for the generation of electric power or energy for use
189	189	in manufacturing tangible personal property for sale or for
190	190	resale, or for the generation of motive power for
191	191	transportation.
192	192	(10) The gross proceeds from the sale or sales of fuel
193	193	and supplies for use or consumption aboard ships, vessels,
194	194	towing vessels, or barges, or drilling ships, rigs or barges,
195	195	or seismic or geophysical vessels, or other watercraft (herein
196	196	for purposes of this exemption being referred to as "vessels")
197	197	engaged in foreign or international commerce or in interstate
198	198	commerce; provided, that nothing in this division shall be
199	199	construed to exempt or exclude from the measure of the tax
200	200	herein levied the gross proceeds of sale or sales of material
201	201	and supplies to any person for use in fulfilling a contract
202	202	for the painting, repair, or reconditioning of vessels,
203	203	barges, ships, other watercraft, and commercial fishing
204	204	vessels of over five tons load displacement as registered with
205	205	the U.S. Coast Guard and licensed by the State of Alabama
206	206	Department of Conservation and Natural Resources.
207	207	85
208	208	86
209	209	87
210	210	88
211	211	89
212	212	90
213	213	91
214	214	92
215	215	93
216	216	94
217	217	95
218	218	96
219	219	97
220	220	98
221	221	99
222	222	100
223	223	101
224	224	102
225	225	103
226	226	104
227	227	105
228	228	106
229	229	107
230	230	108
231	231	109
232	232	110
233	233	111
234	234	112 HB343 INTRODUCEDHB343 INTRODUCED
235	235	Page 5
236	236	For purposes of this subdivision, it shall be presumed
237	237	that vessels engaged in the transportation of cargo between
238	238	ports in the State of Alabama and ports in foreign countries
239	239	or possessions or territories of the United States or between
240	240	ports in the State of Alabama and ports in other states are
241	241	engaged in foreign or international commerce or interstate
242	242	commerce, as the case may be. For the purposes of this
243	243	subdivision, the engaging in foreign or international commerce
244	244	or interstate commerce shall not require that the vessel
245	245	involved deliver cargo to or receive cargo from a port in the
246	246	State of Alabama. For purposes of this subdivision, vessels
247	247	carrying passengers for hire, and no cargo, between ports in
248	248	the State of Alabama and ports in foreign countries or
249	249	possessions or territories of the United States or between
250	250	ports in the State of Alabama and ports in other states shall
251	251	be engaged in foreign or international commerce or interstate
252	252	commerce, as the case may be, if, and only if, both of the
253	253	following conditions are met: (i) The vessel in question is a
254	254	vessel of at least 100 gross tons; and (ii) the vessel in
255	255	question has an unexpired certificate of inspection issued by
256	256	the United States Coast Guard or by the proper authority of a
257	257	foreign country for a foreign vessel, which certificate is
258	258	recognized as acceptable under the laws of the United States.
259	259	Vessels that are engaged in foreign or international commerce
260	260	or interstate commerce shall be deemed for the purposes of
261	261	this subdivision to remain in such commerce while awaiting or
262	262	under repair in a port of the State of Alabama if the vessel
263	263	returns after such repairs are completed to engaging in
264	264	113
265	265	114
266	266	115
267	267	116
268	268	117
269	269	118
270	270	119
271	271	120
272	272	121
273	273	122
274	274	123
275	275	124
276	276	125
277	277	126
278	278	127
279	279	128
280	280	129
281	281	130
282	282	131
283	283	132
284	284	133
285	285	134
286	286	135
287	287	136
288	288	137
289	289	138
290	290	139
291	291	140 HB343 INTRODUCEDHB343 INTRODUCED
292	292	Page 6
293	293	foreign or international commerce or interstate commerce. For
294	294	purposes of this subdivision, seismic or geophysical vessels
295	295	which are engaged either in seismic or geophysical tests or
296	296	evaluations exclusively in offshore federal waters or in
297	297	traveling to or from conducting such tests or evaluations
298	298	shall be deemed to be engaged in international or foreign
299	299	commerce. For purposes of this subdivision, proof that fuel
300	300	and supplies purchased are for use or consumption aboard
301	301	vessels engaged in foreign or international commerce or in
302	302	interstate commerce may be accomplished by the merchant or
303	303	seller securing the duly signed certificate of the vessel
304	304	owner, operator, or captain or such person's respective agent,
305	305	on a form prescribed by the department, that the fuel and
306	306	supplies purchased are for use or consumption aboard vessels
307	307	engaged in foreign or international commerce or in interstate
308	308	commerce. Any person filing a false certificate shall be
309	309	guilty of a misdemeanor and upon conviction shall be fined not
310	310	less than twenty-five dollars ($25) nor more than five hundred
311	311	dollars ($500) for each offense. Each false certificate filed
312	312	shall constitute a separate offense. Any person filing a false
313	313	certificate shall be liable to the department for all taxes
314	314	imposed by this division upon the merchant or seller, together
315	315	with any interest or penalties thereon, by reason of the sale
316	316	or sales of fuel and supplies applicable to the false
317	317	certificate. If a merchant or seller of fuel and supplies
318	318	secures the certificate herein mentioned, properly completed,
319	319	the merchant or seller shall not be liable for the taxes
320	320	imposed by this division, if the merchant or seller had no
321	321	141
322	322	142
323	323	143
324	324	144
325	325	145
326	326	146
327	327	147
328	328	148
329	329	149
330	330	150
331	331	151
332	332	152
333	333	153
334	334	154
335	335	155
336	336	156
337	337	157
338	338	158
339	339	159
340	340	160
341	341	161
342	342	162
343	343	163
344	344	164
345	345	165
346	346	166
347	347	167
348	348	168 HB343 INTRODUCEDHB343 INTRODUCED
349	349	Page 7
350	350	knowledge that the certificate was false when it was filed
351	351	with the merchant or seller.
352	352	(11) The gross proceeds of sales of tangible personal
353	353	property to the State of Alabama, to the counties within the
354	354	state and to incorporated municipalities of the State of
355	355	Alabama.
356	356	(12) The gross proceeds of the sale or sales of
357	357	railroad cars, vessels, barges, and commercial fishing vessels
358	358	of over five tons load displacement as registered with the
359	359	U.S. Coast Guard and licensed by the State of Alabama
360	360	Department of Conservation and Natural Resources, when sold by
361	361	the manufacturers or builders thereof.
362	362	(13) The gross proceeds of the sale or sales of
363	363	materials, equipment, and machinery that, at any time, enter
364	364	into and become a component part of ships, vessels, towing
365	365	vessels or barges, or drilling ships, rigs or barges, or
366	366	seismic or geophysical vessels, other watercraft and
367	367	commercial fishing vessels of over five tons load displacement
368	368	as registered with the U.S. Coast Guard and licensed by the
369	369	State of Alabama Department of Conservation and Natural
370	370	Resources. Additionally, the gross proceeds from the sale or
371	371	sales of lifeboats, personal flotation devices, ring life
372	372	buoys, survival craft equipment, distress signals, EPIRB's,
373	373	fire extinguishers, injury placards, waste management plans
374	374	and logs, marine sanitation devices, navigation rulebooks,
375	375	navigation lights, sound signals, navigation day shapes, oil
376	376	placard cards, garbage placards, FCC SSL, stability
377	377	instructions, first aid equipment, compasses, anchor and radar
378	378	169
379	379	170
380	380	171
381	381	172
382	382	173
383	383	174
384	384	175
385	385	176
386	386	177
387	387	178
388	388	179
389	389	180
390	390	181
391	391	182
392	392	183
393	393	184
394	394	185
395	395	186
396	396	187
397	397	188
398	398	189
399	399	190
400	400	191
401	401	192
402	402	193
403	403	194
404	404	195
405	405	196 HB343 INTRODUCEDHB343 INTRODUCED
406	406	Page 8
407	407	reflectors, general alarm systems, bilge pumps, piping, and
408	408	discharge and electronic position fixing devices which are
409	409	used on the aforementioned watercraft.
410	410	(14) The gross proceeds of the sale or sales of fuel
411	411	oil purchased as fuel for kiln use in manufacturing
412	412	establishments.
413	413	(15) The gross proceeds of the sale or sales of
414	414	tangible personal property to county and city school boards
415	415	within the State of Alabama, independent school boards within
416	416	the State of Alabama, all educational institutions and
417	417	agencies of the State of Alabama, the counties within the
418	418	state, or any incorporated municipalities of the State of
419	419	Alabama, and private educational institutions operating within
420	420	the State of Alabama offering conventional and traditional
421	421	courses of study, such as those offered by public schools,
422	422	colleges, or universities within the State of Alabama; but not
423	423	including nurseries, day care centers, and home schools.
424	424	(16) The gross proceeds from the sale of all devices or
425	425	facilities, and all identifiable components thereof, or
426	426	materials for use therein, acquired primarily for the control,
427	427	reduction, or elimination of air or water pollution and the
428	428	gross proceeds from the sale of all identifiable components
429	429	of, or materials used or intended for use in, structures built
430	430	primarily for the control, reduction, or elimination of air
431	431	and water pollution.
432	432	(17) The gross proceeds of sales of tangible personal
433	433	property or the gross receipts of any business which the state
434	434	is prohibited from taxing under the Constitution or laws of
435	435	197
436	436	198
437	437	199
438	438	200
439	439	201
440	440	202
441	441	203
442	442	204
443	443	205
444	444	206
445	445	207
446	446	208
447	447	209
448	448	210
449	449	211
450	450	212
451	451	213
452	452	214
453	453	215
454	454	216
455	455	217
456	456	218
457	457	219
458	458	220
459	459	221
460	460	222
461	461	223
462	462	224 HB343 INTRODUCEDHB343 INTRODUCED
463	463	Page 9
464	464	the United States or under the Constitution of this state.
465	465	(18) When dealers or distributors use parts taken from
466	466	stocks owned by them in making repairs without charge for the
467	467	parts to the owner of the property repaired pursuant to
468	468	warranty agreements entered into by manufacturers, such use
469	469	shall not constitute taxable sales to the manufacturers,
470	470	distributors, or to the dealers, under this division or under
471	471	any county sales tax law.
472	472	(19) The gross proceeds received from the sale or
473	473	furnishing of food, including potato chips, candy, fruit and
474	474	similar items, soft drinks, tobacco products, and stationery
475	475	and other similar or related articles by hospital canteens
476	476	operated by Alabama state hospitals at Bryce Hospital and
477	477	Partlow State School for Mental Deficients at Tuscaloosa,
478	478	Alabama, and Searcy Hospital at Mt. Vernon, Alabama, for the
479	479	benefit of the patients therein.
480	480	(20) The gross proceeds of the sale, or sales, of
481	481	wrapping paper and other wrapping materials when used in
482	482	preparing poultry or poultry products for delivery, shipment,
483	483	or sale by the producer, processor, packer, or seller of such
484	484	poultry or poultry products, including pallets used in
485	485	shipping poultry and egg products, paper or other materials
486	486	used for lining boxes or other containers in which poultry or
487	487	poultry products are packed together with any other materials
488	488	placed in such containers for the delivery, shipment, or sale
489	489	of poultry or poultry products.
490	490	(21) The gross proceeds of the sales of all
491	491	antibiotics, hormones and hormone preparations, drugs,
492	492	225
493	493	226
494	494	227
495	495	228
496	496	229
497	497	230
498	498	231
499	499	232
500	500	233
501	501	234
502	502	235
503	503	236
504	504	237
505	505	238
506	506	239
507	507	240
508	508	241
509	509	242
510	510	243
511	511	244
512	512	245
513	513	246
514	514	247
515	515	248
516	516	249
517	517	250
518	518	251
519	519	252 HB343 INTRODUCEDHB343 INTRODUCED
520	520	Page 10
521	521	medicines or medications, vitamins, minerals or other
522	522	nutrients, and all other feed ingredients including
523	523	concentrates, supplements, and other feed ingredients when
524	524	such substances are used as ingredients in mixing and
525	525	preparing feed for fish raised to be sold on a commercial
526	526	basis, livestock, and poultry. Such exemption herein granted
527	527	shall be in addition to exemptions now provided by law for
528	528	feed for fish raised to be sold on a commercial basis,
529	529	livestock, and poultry, but not including prepared foods for
530	530	dogs or cats.
531	531	(22) The gross proceeds of the sale, or sales, of
532	532	seedlings, plants, shoots, and slips which are to be used for
533	533	planting vegetable gardens or truck farms and other
534	534	agricultural purposes. Nothing herein shall be construed to
535	535	exempt, or exclude from the computation of the tax levied,
536	536	assessed, or payable, the gross proceeds of the sale, or the
537	537	use of plants, seedlings, shoots, slips, nursery stock, and
538	538	floral products, except as hereinabove exempted.
539	539	(23) The gross proceeds of the sale, or sales, of
540	540	fabricated steel tube sections, when produced and fabricated
541	541	in this state by any person, firm, or corporation for any
542	542	vehicular tunnel for highway vehicular traffic, when sold by
543	543	the manufacturer or fabricator thereof, and also the gross
544	544	proceeds of the sale, or sales, of steel which enters into and
545	545	becomes a component part of such fabricated steel tube
546	546	sections of said tunnel.
547	547	(24) The gross proceeds from sales of admissions to any
548	548	theatrical production, symphonic or other orchestral concert,
549	549	253
550	550	254
551	551	255
552	552	256
553	553	257
554	554	258
555	555	259
556	556	260
557	557	261
558	558	262
559	559	263
560	560	264
561	561	265
562	562	266
563	563	267
564	564	268
565	565	269
566	566	270
567	567	271
568	568	272
569	569	273
570	570	274
571	571	275
572	572	276
573	573	277
574	574	278
575	575	279
576	576	280 HB343 INTRODUCEDHB343 INTRODUCED
577	577	Page 11
578	578	ballet, or opera production when the concert or production is
579	579	presented by any society, association, guild, or workshop
580	580	group, organized within this state, whose members or some of
581	581	whose members regularly and actively participate in the
582	582	concerts or productions for the purposes of providing a
583	583	creative outlet for the cultural and educational interests of
584	584	its members, and of promoting such interests for the
585	585	betterment of the community by presenting the productions to
586	586	the general public for an admission charge. The employment of
587	587	a paid director or conductor to assist in any such
588	588	presentation described in this subdivision shall not be
589	589	construed to prohibit the exemptions herein provided.
590	590	(25) The gross proceeds of sales of "herbicides" for
591	591	agricultural uses by whomsoever sold. The term herbicides, as
592	592	used in this subdivision, means any substance or mixture of
593	593	substances intended to prevent, destroy, repel, or retard the
594	594	growth of weeds or plants. The term includes preemergence
595	595	herbicides, postemergence herbicides, lay-by herbicides,
596	596	pasture herbicides, defoliant herbicides, and desiccant
597	597	herbicides.
598	598	(26) The Alabama Chapter of the Cystic Fibrosis
599	599	Research Foundation and the Jefferson Tuberculosis Sanatorium
600	600	and any of their departments or agencies, heretofore or
601	601	hereafter organized and existing in good faith in the State of
602	602	Alabama for purposes other than for pecuniary gain and not for
603	603	individual profit, shall be exempted from the computation of
604	604	the tax on the gross proceeds of all sales levied, assessed,
605	605	or payable.
606	606	281
607	607	282
608	608	283
609	609	284
610	610	285
611	611	286
612	612	287
613	613	288
614	614	289
615	615	290
616	616	291
617	617	292
618	618	293
619	619	294
620	620	295
621	621	296
622	622	297
623	623	298
624	624	299
625	625	300
626	626	301
627	627	302
628	628	303
629	629	304
630	630	305
631	631	306
632	632	307
633	633	308 HB343 INTRODUCEDHB343 INTRODUCED
634	634	Page 12
635	635	(27) The gross proceeds from the sale or sales of fuel
636	636	for use or consumption aboard commercial fishing vessels are
637	637	exempt from the computation of all sales taxes levied,
638	638	assessed, or payable under this division or levied under any
639	639	county or municipal sales tax law.
640	640	(28) The gross proceeds from the sales of rope, fishing
641	641	nets, tools, or any substitute used directly in the process of
642	642	commercial fishing by a holder of a commercial license issued
643	643	pursuant to Chapter 12 of Title 9.
644	644	(29) The gross proceeds of sales of sawdust, wood
645	645	shavings, wood chips, and other like materials sold for use as
646	646	chicken litter by poultry producers and poultry processors.
647	647	(30) The gross proceeds of the sales of all
648	648	antibiotics, hormones and hormone preparations, drugs,
649	649	medicines, and other medications including serums and
650	650	vaccines, vitamins, minerals, or other nutrients for use in
651	651	the production and growing of fish, livestock, and poultry by
652	652	whomsoever sold. The exemption herein granted shall be in
653	653	addition to the exemption provided by law for feed for fish,
654	654	livestock, and poultry, and in addition to the exemptions
655	655	provided by law for the above-enumerated substances and
656	656	products when mixed and used as ingredients in fish,
657	657	livestock, and poultry feed.
658	658	(31) The gross proceeds of the sale or sales of all
659	659	medicines prescribed by physicians for persons who are 65
660	660	years of age or older, and when the prescriptions are filled
661	661	by licensed pharmacists, shall be exempted under this division
662	662	or under any county or municipal sales tax law. The exemption
663	663	309
664	664	310
665	665	311
666	666	312
667	667	313
668	668	314
669	669	315
670	670	316
671	671	317
672	672	318
673	673	319
674	674	320
675	675	321
676	676	322
677	677	323
678	678	324
679	679	325
680	680	326
681	681	327
682	682	328
683	683	329
684	684	330
685	685	331
686	686	332
687	687	333
688	688	334
689	689	335
690	690	336 HB343 INTRODUCEDHB343 INTRODUCED
691	691	Page 13
692	692	provided in this section shall not apply to any medicine
693	693	purchased in any manner other than as is herein provided.
694	694	For the purposes of this subdivision, proof of age may
695	695	be accomplished by filing with the dispensing pharmacist any
696	696	one or more of the following documents:
697	697	a. The name and claim number as shown on a Medicare
698	698	card issued by the United States Social Security
699	699	Administration.
700	700	b. A certificate executed by any adult person having
701	701	knowledge of the fact that the person for whom the medicine
702	702	was prescribed is not less than 65 years of age.
703	703	c. An affidavit executed by any adult person having
704	704	knowledge of the fact that the person for whom the medicine
705	705	was prescribed is not less than 65 years of age.
706	706	For the purposes of this subdivision, any person filing
707	707	a false proof of age shall be guilty of a misdemeanor and upon
708	708	conviction thereof shall be punished by a fine of one hundred
709	709	dollars ($100).
710	710	(32) There shall be exempted from the tax levied by
711	711	this division the gross receipts of sales of grass sod of all
712	712	kinds and character when in the original state of production
713	713	or condition of preparation for sale, when the sales are made
714	714	by the producer or members of the producer's family or for the
715	715	producer by those employed by the producer to assist in the
716	716	production thereof; provided, that nothing herein shall be
717	717	construed to exempt sales of sod by a person engaged in the
718	718	business of selling plants, seedlings, nursery stock, or
719	719	floral products.
720	720	337
721	721	338
722	722	339
723	723	340
724	724	341
725	725	342
726	726	343
727	727	344
728	728	345
729	729	346
730	730	347
731	731	348
732	732	349
733	733	350
734	734	351
735	735	352
736	736	353
737	737	354
738	738	355
739	739	356
740	740	357
741	741	358
742	742	359
743	743	360
744	744	361
745	745	362
746	746	363
747	747	364 HB343 INTRODUCEDHB343 INTRODUCED
748	748	Page 14
749	749	(33) The gross receipts of sales of the following items
750	750	or materials that are necessary in the farm-to-market
751	751	production of tomatoes when such items or materials are used
752	752	by the producer or members of the producer's family or for the
753	753	producer by those employed by the producer to assist in the
754	754	production thereof: Twine for tying tomatoes, tomato stakes,
755	755	field boxes (wooden boxes used to take tomatoes from the
756	756	fields to shed), and tomato boxes used in shipments to
757	757	customers.
758	758	(34) The gross proceeds from the sale of liquefied
759	759	petroleum gas or natural gas sold to be used for agricultural
760	760	purposes.
761	761	(35) The gross receipts of sales from state nurseries
762	762	of forest tree seedlings.
763	763	(36) The gross receipts of sales of forest tree seed by
764	764	the state.
765	765	(37) The gross receipts of sales of Lespedeza bicolor
766	766	and other species of perennial plant seed and seedlings sold
767	767	for wildlife and game food production purposes by the state.
768	768	(38) The gross receipts of any aircraft manufactured,
769	769	sold, and delivered in this state if the aircraft are not
770	770	permanently domiciled in Alabama and are removed to another
771	771	state.
772	772	(39) The gross proceeds from the sale or sales of all
773	773	diesel fuel used for off-highway agricultural purposes.
774	774	(40) The gross proceeds from sales of admissions to any
775	775	sporting event that:
776	776	a. Takes place in the State of Alabama on or after
777	777	365
778	778	366
779	779	367
780	780	368
781	781	369
782	782	370
783	783	371
784	784	372
785	785	373
786	786	374
787	787	375
788	788	376
789	789	377
790	790	378
791	791	379
792	792	380
793	793	381
794	794	382
795	795	383
796	796	384
797	797	385
798	798	386
799	799	387
800	800	388
801	801	389
802	802	390
803	803	391
804	804	392 HB343 INTRODUCEDHB343 INTRODUCED
805	805	Page 15
806	806	January 1, 1984, regardless of when such sales occur; and
807	807	b. Is hosted by a not-for-profit corporation organized
808	808	and existing under the laws of the State of Alabama; and
809	809	c. Determines a national championship of a national
810	810	organization, including, but not limited to, the Professional
811	811	Golfers Association of America, the Tournament Players
812	812	Association, the United States Golf Association, the United
813	813	States Tennis Association, and the National Collegiate
814	814	Athletic Association; and
815	815	d. Has not been held in the State of Alabama on more
816	816	than one prior occasion, provided, however, that for such
817	817	purpose the Professional Golfers Association Championship, the
818	818	United States Open Golf Championship, the United States
819	819	Amateur Golf Championship of the United States Golf
820	820	Association, and the United States Open Tennis Championship
821	821	shall each be treated as a separate event.
822	822	(41) The gross receipts from the sale of any aircraft
823	823	and replacement parts, components, systems, supplies, and
824	824	sundries affixed or used on the aircraft and ground support
825	825	equipment and vehicles used by or for the aircraft to or by a
826	826	certificated or licensed air carrier with a hub operation
827	827	within this state, for use in conducting intrastate,
828	828	interstate, or foreign commerce for transporting people or
829	829	property by air. For the purpose of this subdivision, the
830	830	words "hub operation within this state" shall be construed to
831	831	have both of the following criteria:
832	832	a. There originates from the location 15 or more flight
833	833	departures and five or more different first-stop destinations
834	834	393
835	835	394
836	836	395
837	837	396
838	838	397
839	839	398
840	840	399
841	841	400
842	842	401
843	843	402
844	844	403
845	845	404
846	846	405
847	847	406
848	848	407
849	849	408
850	850	409
851	851	410
852	852	411
853	853	412
854	854	413
855	855	414
856	856	415
857	857	416
858	858	417
859	859	418
860	860	419
861	861	420 HB343 INTRODUCEDHB343 INTRODUCED
862	862	Page 16
863	863	five days per week for six or more months during the calendar
864	864	year.
865	865	b. Passengers or property or both are regularly
866	866	exchanged at the location between flights of the same or a
867	867	different certificated or licensed air carrier.
868	868	(42) The gross receipts from the sale of hot or cold
869	869	food and beverage products sold to or by a certificated or
870	870	licensed air carrier with a hub operation within this state,
871	871	for use in conducting intrastate, interstate, or foreign
872	872	commerce for transporting people or property by air. For the
873	873	purpose of this subdivision, the words "hub operation within
874	874	this state" shall be construed to have all of the following
875	875	criteria:
876	876	a. There originates from the location 15 or more flight
877	877	departures and five or more different first-stop destinations
878	878	five days per week for six or more months during the calendar
879	879	year.
880	880	b. Passengers or property or both are regularly
881	881	exchanged at the location between flights of the same or a
882	882	different certificated or licensed air carrier.
883	883	(43) The gross receipts from the sale of any aviation
884	884	jet fuel to a certificated or licensed air carrier purchased
885	885	for use in scheduled all-cargo operations being conducted on
886	886	international flights or in international commerce. For
887	887	purposes of this subdivision, the following words or terms
888	888	shall be defined and interpreted as follows:
889	889	a. Air Carrier. Any person, firm, corporation, or
890	890	entity undertaking by any means, directly or indirectly, to
891	891	421
892	892	422
893	893	423
894	894	424
895	895	425
896	896	426
897	897	427
898	898	428
899	899	429
900	900	430
901	901	431
902	902	432
903	903	433
904	904	434
905	905	435
906	906	436
907	907	437
908	908	438
909	909	439
910	910	440
911	911	441
912	912	442
913	913	443
914	914	444
915	915	445
916	916	446
917	917	447
918	918	448 HB343 INTRODUCEDHB343 INTRODUCED
919	919	Page 17
920	920	provide air transportation.
921	921	b. All-Cargo Operations. Any flight conducted by an air
922	922	carrier for compensation or hire other than a passenger
923	923	carrying flight, except passengers as specified in 14 C.F.R. §
924	924	121.583(a) or 14 C.F.R. § 135.85, as amended.
925	925	c. International Commerce. Any air carrier engaged in
926	926	all-cargo operations transporting goods for compensation or
927	927	hire on international flights.
928	928	d. International Flights. Any air carrier conducting
929	929	scheduled all-cargo operations between any point within the 50
930	930	states of the United States and the District of Columbia and
931	931	any point outside the 50 states of the United States and the
932	932	District of Columbia, including any interim stops within the
933	933	United States so long as the ultimate origin or destination of
934	934	the aircraft is outside the United States and the District of
935	935	Columbia.
936	936	(44) The gross proceeds of the sale or sales of the
937	937	following:
938	938	a. Drill pipe, casing, tubing, and other pipe used for
939	939	the exploration for or production of oil, gas, sulphur, or
940	940	other minerals in offshore federal waters.
941	941	b. Tangible personal property exclusively used for the
942	942	exploration for or production of oil, gas, sulphur, or other
943	943	minerals in offshore federal waters.
944	944	c. Fuel and supplies for use or consumption aboard
945	945	boats, ships, aircraft, and towing vessels when used
946	946	exclusively in transporting persons or property between a
947	947	point in Alabama and a point or points in offshore federal
948	948	449
949	949	450
950	950	451
951	951	452
952	952	453
953	953	454
954	954	455
955	955	456
956	956	457
957	957	458
958	958	459
959	959	460
960	960	461
961	961	462
962	962	463
963	963	464
964	964	465
965	965	466
966	966	467
967	967	468
968	968	469
969	969	470
970	970	471
971	971	472
972	972	473
973	973	474
974	974	475
975	975	476 HB343 INTRODUCEDHB343 INTRODUCED
976	976	Page 18
977	977	waters for the exploration for or production of oil, gas,
978	978	sulphur, or other minerals in offshore federal waters.
979	979	d. Drilling equipment that is used for the exploration
980	980	for or production of oil, gas, sulphur, or other minerals,
981	981	that is built for exclusive use outside this state and that
982	982	is, on completion, removed forthwith from this state.
983	983	The delivery of items exempted by this subdivision to
984	984	the purchaser or lessee in this state does not disqualify the
985	985	purchaser or lessee from the exemption if the property is
986	986	removed from the state by any means, including by the use of
987	987	the purchaser's or lessee's own facilities.
988	988	The shipment to a place in this state of equipment
989	989	exempted by this subdivision for further assembly or
990	990	fabrication does not disqualify the purchaser or lessee from
991	991	the exemption if on completion of the further assembly or
992	992	fabrication the equipment is removed forthwith from this
993	993	state. This subdivision applies to a sale that may occur when
994	994	the equipment exempted is further assembled or fabricated if
995	995	on completion the equipment is removed forthwith from this
996	996	state.
997	997	(45) The gross receipts derived from all bingo games
998	998	and operations that are conducted in compliance with validly
999	999	enacted legislation authorizing the conduct of such games and
1000	1000	operations, and which comply with the distribution
1001	1001	requirements of the applicable local laws; provided that the
1002	1002	exemption from sales taxation granted by this subdivision
1003	1003	shall apply only to gross receipts taxable under subdivision
1004	1004	(2) of Section 40-23-2. It is further provided that this
1005	1005	477
1006	1006	478
1007	1007	479
1008	1008	480
1009	1009	481
1010	1010	482
1011	1011	483
1012	1012	484
1013	1013	485
1014	1014	486
1015	1015	487
1016	1016	488
1017	1017	489
1018	1018	490
1019	1019	491
1020	1020	492
1021	1021	493
1022	1022	494
1023	1023	495
1024	1024	496
1025	1025	497
1026	1026	498
1027	1027	499
1028	1028	500
1029	1029	501
1030	1030	502
1031	1031	503
1032	1032	504 HB343 INTRODUCEDHB343 INTRODUCED
1033	1033	Page 19
1034	1034	exemption shall not apply to any gross receipts from the sale
1035	1035	of tangible personal property, such as concessions, novelties,
1036	1036	food, beverages, etc. The exemption provided for in this
1037	1037	section shall be limited to those games and operations by
1038	1038	organizations that have qualified for exemption under the
1039	1039	provisions of 26 U.S.C. § 501 (c) (3), (4), (7), (8), (10), or
1040	1040	(19), or which are defined in 26 U.S.C. § 501(d).
1041	1041	(46) The gross receipts derived from the sale or sales
1042	1042	of fruit or other agricultural products by the person or
1043	1043	company, as defined in Section 40-23-1, that planted or
1044	1044	cultivated and harvested the fruit or agricultural product,
1045	1045	when the land is owned or leased by the seller.
1046	1046	(47) The gross receipts derived from the sale or sales
1047	1047	of all domestically mined or produced coal, coke, and coke
1048	1048	by-products used in cogeneration plants.
1049	1049	(48) The gross receipts from the sale or sales of
1050	1050	metal, other than gold or silver, when such metal is purchased
1051	1051	for the purpose of transferring such metal to an investment
1052	1052	trust in exchange for shares or other units, each of which are
1053	1053	both publicly traded and represent fractional undivided
1054	1054	beneficial interests in the trust's net assets, including
1055	1055	metal stored in warehouses located in this state, as well as
1056	1056	the gross proceeds from the sale or other transfer of such
1057	1057	metal to or from the investment trust in exchange for shares
1058	1058	or other units that are publicly traded and represent
1059	1059	fractional undivided beneficial interests in the trust's net
1060	1060	assets but not to the extent that metal is transferred to or
1061	1061	from the investment trust in exchange for consideration other
1062	1062	505
1063	1063	506
1064	1064	507
1065	1065	508
1066	1066	509
1067	1067	510
1068	1068	511
1069	1069	512
1070	1070	513
1071	1071	514
1072	1072	515
1073	1073	516
1074	1074	517
1075	1075	518
1076	1076	519
1077	1077	520
1078	1078	521
1079	1079	522
1080	1080	523
1081	1081	524
1082	1082	525
1083	1083	526
1084	1084	527
1085	1085	528
1086	1086	529
1087	1087	530
1088	1088	531
1089	1089	532 HB343 INTRODUCEDHB343 INTRODUCED
1090	1090	Page 20
1091	1091	than such publicly traded shares or other units. For purposes
1092	1092	of this subdivision, the term "metals" includes, but is not
1093	1093	limited to, copper, aluminum, nickel, zinc, tin, lead, and
1094	1094	other similar metals typically used in commercial and
1095	1095	industrial applications.
1096	1096	(49)a. For the period commencing on October 1, 2012,
1097	1097	and ending May 30, 2027, the gross receipts from the sale of
1098	1098	parts, components, and systems that become a part of a fixed
1099	1099	or rotary wing military aircraft or certified transport
1100	1100	category aircraft that undergoes conversion, reconfiguration,
1101	1101	or general maintenance so long as the address of the aircraft
1102	1102	for FAA registration is not in the state ; provided, however,
1103	1103	that this exemption shall not apply to a local sales tax
1104	1104	unless previously exempted by local law or approved by
1105	1105	resolution of the local governing body.
1106	1106	b. The exemption authorized by this subdivision shall
1107	1107	not be available for sales of parts, components, or systems
1108	1108	for new contracts or projects entered into after May 30, 2027,
1109	1109	unless the Legislature enacts legislation to continue or
1110	1110	reinstate the exemption for new contracts or projects after
1111	1111	that date. No action or inaction on the part of the
1112	1112	Legislature shall reduce, suspend, or disqualify sales of
1113	1113	parts, components, or systems from the exemption in any past
1114	1114	year or future years until May 30, 2030, with respect to
1115	1115	contracts or projects entered into on or before May 30, 2027;
1116	1116	it being the sole intent that failure of the Legislature to
1117	1117	enact legislation to reinstate the exemption for new contracts
1118	1118	or projects after May 30, 2027, shall affect only the
1119	1119	533
1120	1120	534
1121	1121	535
1122	1122	536
1123	1123	537
1124	1124	538
1125	1125	539
1126	1126	540
1127	1127	541
1128	1128	542
1129	1129	543
1130	1130	544
1131	1131	545
1132	1132	546
1133	1133	547
1134	1134	548
1135	1135	549
1136	1136	550
1137	1137	551
1138	1138	552
1139	1139	553
1140	1140	554
1141	1141	555
1142	1142	556
1143	1143	557
1144	1144	558
1145	1145	559
1146	1146	560 HB343 INTRODUCEDHB343 INTRODUCED
1147	1147	Page 21
1148	1148	availability of the exemption to new contracts and projects
1149	1149	after that date and shall not affect availability of the
1150	1150	exemption for contracts or projects entered into on or before
1151	1151	May 30, 2027, for which the exemption shall be available until
1152	1152	May 30, 2030.
1153	1153	(50) The gross proceeds from the sale or sales within
1154	1154	school buildings of lunches to pupils of kindergarten,
1155	1155	grammar, and high schools, either public or private, that are
1156	1156	not sold for profit.
1157	1157	(51) The gross proceeds of services provided by
1158	1158	photographers, including, but not limited to, sitting fees and
1159	1159	consultation fees, even when provided as part of a transaction
1160	1160	ultimately involving the sale of one or more photographs, so
1161	1161	long as the exempt services are separately stated to the
1162	1162	customer on a bill of sale, invoice, or like memorialization
1163	1163	of the transaction. For transactions occurring before October
1164	1164	1, 2017, neither the Department of Revenue nor local tax
1165	1165	officials may seek payment for sales tax not collected. With
1166	1166	regard to such transactions in which sales tax was collected
1167	1167	and remitted on services provided by photographers, neither
1168	1168	the taxpayer nor the entity remitting sales tax shall have the
1169	1169	right to seek refund of such tax.
1170	1170	(52) a. For the period commencing on June 1, 2018, and
1171	1171	ending 10 years thereafter, unless extended by an act of the
1172	1172	Legislature, the gross proceeds of sales of bullion or money,
1173	1173	as defined in Section 40-1-1(7).
1174	1174	b. For purposes of this subdivision, the following
1175	1175	words or terms shall be defined and interpreted as follows:
1176	1176	561
1177	1177	562
1178	1178	563
1179	1179	564
1180	1180	565
1181	1181	566
1182	1182	567
1183	1183	568
1184	1184	569
1185	1185	570
1186	1186	571
1187	1187	572
1188	1188	573
1189	1189	574
1190	1190	575
1191	1191	576
1192	1192	577
1193	1193	578
1194	1194	579
1195	1195	580
1196	1196	581
1197	1197	582
1198	1198	583
1199	1199	584
1200	1200	585
1201	1201	586
1202	1202	587
1203	1203	588 HB343 INTRODUCEDHB343 INTRODUCED
1204	1204	Page 22
1205	1205	1. Bullion. Gold, silver, platinum, palladium, or a
1206	1206	combination of each precious metal, that has gone through a
1207	1207	refining process and for which the item's value depends on its
1208	1208	mass and purity, and not on its form, numismatic value, or
1209	1209	other value. The term includes bullion in the form of bars,
1210	1210	ingots, rounds, or coins that meet the requirements set forth
1211	1211	above. Qualifying bullion may contain other metals or
1212	1212	substances, provided that the other substances are minimal in
1213	1213	value compared with the value of the gold, silver, platinum,
1214	1214	or palladium and the other substances do not add value to the
1215	1215	item. For purposes of this subparagraph, "gold, silver,
1216	1216	platinum, or palladium" does not include jewelry or works of
1217	1217	art.
1218	1218	2. Mass. An item's mass is its weight in precious
1219	1219	metal.
1220	1220	3. Numismatic Value. An external value above and beyond
1221	1221	the base value of the underlying precious metal, due to the
1222	1222	item's rarity, condition, age, or other external factor.
1223	1223	4. Purity. An item's purity is the proportion of
1224	1224	precious metal contained within.
1225	1225	c. In order for bullion to qualify for the sales tax
1226	1226	exemption, gold, silver, platinum, and palladium items must
1227	1227	meet all of the following requirements:
1228	1228	1. Must be refined.
1229	1229	2. Must contain at least 80 percent gold, silver,
1230	1230	platinum, or palladium or some combination of these metals.
1231	1231	3. The sales price of the item must fluctuate with and
1232	1232	depend on the market price of the underlying precious metal,
1233	1233	589
1234	1234	590
1235	1235	591
1236	1236	592
1237	1237	593
1238	1238	594
1239	1239	595
1240	1240	596
1241	1241	597
1242	1242	598
1243	1243	599
1244	1244	600
1245	1245	601
1246	1246	602
1247	1247	603
1248	1248	604
1249	1249	605
1250	1250	606
1251	1251	607
1252	1252	608
1253	1253	609
1254	1254	610
1255	1255	611
1256	1256	612
1257	1257	613
1258	1258	614
1259	1259	615
1260	1260	616 HB343 INTRODUCEDHB343 INTRODUCED
1261	1261	Page 23
1262	1262	and not on the item's rarity, condition, age, or other
1263	1263	external factor.
1264	1264	(53) a. The gross proceeds of the initial retail sales
1265	1265	of adaptive equipment that is permanently affixed to a motor
1266	1266	vehicle.
1267	1267	b. For the purposes of this subdivision, the following
1268	1268	words or terms shall be defined and interpreted as follows:
1269	1269	1. Adaptive Equipment. Equipment not generally used by
1270	1270	persons with normal mobility that is appropriate for use in a
1271	1271	motor vehicle and that is not normally provided by a motor
1272	1272	vehicle manufacturer.
1273	1273	2. Motor Vehicle. A vehicle as defined in Section
1274	1274	40-12-240.
1275	1275	3. Motor Vehicle Manufacturer. Every person engaged in
1276	1276	the business of constructing or assembling vehicles or
1277	1277	manufactured homes.
1278	1278	c. In order to qualify for the exemption provided for
1279	1279	herein, the adaptive equipment must be separately stated to
1280	1280	the customer on a bill of sale, invoice, or like
1281	1281	memorialization of the transaction.
1282	1282	(54) For the period commencing on October 1, 2022, and
1283	1283	ending September 30, 2027, unless extended by an act of the
1284	1284	Legislature, the gross receipts derived from the sale of
1285	1285	producer value added agricultural products when the sale is
1286	1286	made by the producer or by the producer's immediate family, or
1287	1287	for the producer by the producer's employees.
1288	1288	(b) Any violation of any provision of this section
1289	1289	shall be punishable in a court of competent jurisdiction by a
1290	1290	617
1291	1291	618
1292	1292	619
1293	1293	620
1294	1294	621
1295	1295	622
1296	1296	623
1297	1297	624
1298	1298	625
1299	1299	626
1300	1300	627
1301	1301	628
1302	1302	629
1303	1303	630
1304	1304	631
1305	1305	632
1306	1306	633
1307	1307	634
1308	1308	635
1309	1309	636
1310	1310	637
1311	1311	638
1312	1312	639
1313	1313	640
1314	1314	641
1315	1315	642
1316	1316	643
1317	1317	644 HB343 INTRODUCEDHB343 INTRODUCED
1318	1318	Page 24
1319	1319	fine of not less than five hundred dollars ($500) and no more
1320	1320	than two thousand dollars ($2,000) and imprisonment of not
1321	1321	less than six months nor more than one year in the county
1322	1322	jail."
1323	1323	Section 2. This act shall become effective on the
1324	1324	first day of the third month following its passage and
1325	1325	approval by the Governor, or its otherwise becoming law.
1326	1326	645
1327	1327	646
1328	1328	647
1329	1329	648
1330	1330	649
1331	1331	650
1332	1332	651