Alabama 2023 Regular Session

Alabama House Bill HB375 Compare Versions

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

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1	1	HB375INTRODUCED
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3	3	O1YCWW-1
4	4	By Representatives Simpson, Stadthagen, Kiel, Mooney, Marques,
5	5	Brown, Sorrells, Stringer, Woods, Shirey, Bedsole, Kitchens,
6	6	Treadaway, Wood (R)
7	7	RFD: Ways and Means Education
8	8	First Read: 25-Apr-23
9	9	2023 Regular Session
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17	17	8 O1YCWW-1 04/21/2023 DJ (F)DJ 2023-1694
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19	19	SYNOPSIS:
20	20	Under existing law, the state imposes sales or
21	21	use taxes upon the purchase of certain items. Counties
22	22	and municipalities impose additional sales and use
23	23	taxes. The purchase of certain items are exempt from
24	24	these taxes.
25	25	This bill would exempt the purchase of gun safes
26	26	and gun safety devices from sales and use tax.
27	27	A BILL
28	28	TO BE ENTITLED
29	29	AN ACT
30	30	Relating to sales and use tax; to amend Section
31	31	40-23-4, as amended by Acts Act 2022-199, 2022-291, 2022-293,
32	32	and 2022-373 of the 2022 Regular Session, Code of Alabama
33	33	1975, to exempt the purchase of gun safes and gun safety
34	34	devices from sales and use tax.
35	35	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
36	36	Section 1. Section 40-23-4, Code of Alabama 1975, is
37	37	amended to read as follows:
38	38	"§40-23-4
39	39	(a) There are exempted from the provisions of this
40	40	division and from the computation of the amount of the tax
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70	70	levied, assessed, or payable under this division the
71	71	following:
72	72	(1) The gross proceeds of the sales of lubricating oil
73	73	and gasoline as defined in Sections 40-17-30 and 40-17-170 and
74	74	the gross proceeds from those sales of lubricating oil
75	75	destined for out-of-state use which are transacted in a manner
76	76	whereby an out-of-state purchaser takes delivery of such oil
77	77	at a distributor's plant within this state and transports it
78	78	out-of-state, which are otherwise taxed.
79	79	(2) The gross proceeds of the sale, or sales, of
80	80	fertilizer when used for agricultural purposes. The word
81	81	"fertilizer" shall not be construed to include cottonseed
82	82	meal, when not in combination with other materials.
83	83	(3) The gross proceeds of the sale, or sales, of seeds
84	84	for planting purposes and baby chicks and poults. Nothing
85	85	herein shall be construed to exempt or exclude from the
86	86	computation of the tax levied, assessed, or payable, the gross
87	87	proceeds of the sale or sales of plants, seedlings, nursery
88	88	stock, or floral products.
89	89	(4) The gross proceeds of sales of insecticides and
90	90	fungicides when used for agricultural purposes or when used by
91	91	persons properly permitted by the Department of Agriculture
92	92	and Industries or any applicable local or state governmental
93	93	authority for structural pest control work and feed for
94	94	livestock and poultry, but not including prepared food for
95	95	dogs and cats.
96	96	(5) The gross proceeds of sales of all livestock by
97	97	whomsoever sold, and also the gross proceeds of poultry and
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127	127	other products of the farm, dairy, grove, or garden, when in
128	128	the original state of production or condition of preparation
129	129	for sale, when such sale or sales are made by the producer or
130	130	members of the producer's immediate family or for the producer
131	131	by those employed by the producer to assist in the production
132	132	thereof. Nothing herein shall be construed to exempt or
133	133	exclude from the measure or computation of the tax levied,
134	134	assessed, or payable hereunder, the gross proceeds of sales of
135	135	poultry or poultry products when not products of the farm.
136	136	(6) Cottonseed meal exchanged for cottonseed at or by
137	137	cotton gins.
138	138	(7) The gross receipts from the business on which, or
139	139	for engaging in which, a license or privilege tax is levied by
140	140	or under Sections 40-21-50, 40-21-53, and 40-21-56 through
141	141	40-21-60; provided, that nothing contained in this subdivision
142	142	shall be construed to exempt or relieve the person or persons
143	143	operating the business enumerated in these sections from the
144	144	payments of the tax levied by this division upon or measured
145	145	by the gross proceeds of sales of any tangible personal
146	146	property, except gas and water, the gross receipts from the
147	147	sale of which are the measure of the tax levied by Section
148	148	40-21-50, merchandise or other tangible commodities sold at
149	149	retail by the persons, unless the gross proceeds of sale
150	150	thereof are otherwise specifically exempted by this division.
151	151	(8) The gross proceeds of sales or gross receipts of or
152	152	by any person, firm, or corporation, from the sale of
153	153	transportation, gas, water, or electricity, of the kinds and
154	154	natures, the rates and charges for which, when sold by public
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184	184	utilities, are customarily fixed and determined by the Public
185	185	Service Commission of Alabama or like regulatory bodies.
186	186	(9) The gross proceeds of the sale, or sales of wood
187	187	residue, coal, or coke to manufacturers, electric power
188	188	companies, and transportation companies for use or consumption
189	189	in the production of by-products, or the generation of heat or
190	190	power used in manufacturing tangible personal property for
191	191	sale, for the generation of electric power or energy for use
192	192	in manufacturing tangible personal property for sale or for
193	193	resale, or for the generation of motive power for
194	194	transportation.
195	195	(10) The gross proceeds from the sale or sales of fuel
196	196	and supplies for use or consumption aboard ships, vessels,
197	197	towing vessels, or barges, or drilling ships, rigs or barges,
198	198	or seismic or geophysical vessels, or other watercraft (herein
199	199	for purposes of this exemption being referred to as "vessels")
200	200	engaged in foreign or international commerce or in interstate
201	201	commerce; provided, that nothing in this division shall be
202	202	construed to exempt or exclude from the measure of the tax
203	203	herein levied the gross proceeds of sale or sales of material
204	204	and supplies to any person for use in fulfilling a contract
205	205	for the painting, repair, or reconditioning of vessels,
206	206	barges, ships, other watercraft, and commercial fishing
207	207	vessels of over five tons load displacement as registered with
208	208	the U.S. Coast Guard and licensed by the State of Alabama
209	209	Department of Conservation and Natural Resources.
210	210	For purposes of this subdivision, it shall be presumed
211	211	that vessels engaged in the transportation of cargo between
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241	241	ports in the State of Alabama and ports in foreign countries
242	242	or possessions or territories of the United States or between
243	243	ports in the State of Alabama and ports in other states are
244	244	engaged in foreign or international commerce or interstate
245	245	commerce, as the case may be. For the purposes of this
246	246	subdivision, the engaging in foreign or international commerce
247	247	or interstate commerce shall not require that the vessel
248	248	involved deliver cargo to or receive cargo from a port in the
249	249	State of Alabama. For purposes of this subdivision, vessels
250	250	carrying passengers for hire, and no cargo, between ports in
251	251	the State of Alabama and ports in foreign countries or
252	252	possessions or territories of the United States or between
253	253	ports in the State of Alabama and ports in other states shall
254	254	be engaged in foreign or international commerce or interstate
255	255	commerce, as the case may be, if, and only if, both of the
256	256	following conditions are met: (i) The vessel in question is a
257	257	vessel of at least 100 gross tons; and (ii) the vessel in
258	258	question has an unexpired certificate of inspection issued by
259	259	the United States Coast Guard or by the proper authority of a
260	260	foreign country for a foreign vessel, which certificate is
261	261	recognized as acceptable under the laws of the United States.
262	262	Vessels that are engaged in foreign or international commerce
263	263	or interstate commerce shall be deemed for the purposes of
264	264	this subdivision to remain in such commerce while awaiting or
265	265	under repair in a port of the State of Alabama if the vessel
266	266	returns after such repairs are completed to engaging in
267	267	foreign or international commerce or interstate commerce. For
268	268	purposes of this subdivision, seismic or geophysical vessels
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298	298	which are engaged either in seismic or geophysical tests or
299	299	evaluations exclusively in offshore federal waters or in
300	300	traveling to or from conducting such tests or evaluations
301	301	shall be deemed to be engaged in international or foreign
302	302	commerce. For purposes of this subdivision, proof that fuel
303	303	and supplies purchased are for use or consumption aboard
304	304	vessels engaged in foreign or international commerce or in
305	305	interstate commerce may be accomplished by the merchant or
306	306	seller securing the duly signed certificate of the vessel
307	307	owner, operator, or captain or such person's respective agent,
308	308	on a form prescribed by the department, that the fuel and
309	309	supplies purchased are for use or consumption aboard vessels
310	310	engaged in foreign or international commerce or in interstate
311	311	commerce. Any person filing a false certificate shall be
312	312	guilty of a misdemeanor and upon conviction shall be fined not
313	313	less than twenty-five dollars ($25) nor more than five hundred
314	314	dollars ($500) for each offense. Each false certificate filed
315	315	shall constitute a separate offense. Any person filing a false
316	316	certificate shall be liable to the department for all taxes
317	317	imposed by this division upon the merchant or seller, together
318	318	with any interest or penalties thereon, by reason of the sale
319	319	or sales of fuel and supplies applicable to the false
320	320	certificate. If a merchant or seller of fuel and supplies
321	321	secures the certificate herein mentioned, properly completed,
322	322	the merchant or seller shall not be liable for the taxes
323	323	imposed by this division, if the merchant or seller had no
324	324	knowledge that the certificate was false when it was filed
325	325	with the merchant or seller.
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355	355	(11) The gross proceeds of sales of tangible personal
356	356	property to the State of Alabama, to the counties within the
357	357	state and to incorporated municipalities of the State of
358	358	Alabama.
359	359	(12) The gross proceeds of the sale or sales of
360	360	railroad cars, vessels, barges, and commercial fishing vessels
361	361	of over five tons load displacement as registered with the
362	362	U.S. Coast Guard and licensed by the State of Alabama
363	363	Department of Conservation and Natural Resources, when sold by
364	364	the manufacturers or builders thereof.
365	365	(13) The gross proceeds of the sale or sales of
366	366	materials, equipment, and machinery that, at any time, enter
367	367	into and become a component part of ships, vessels, towing
368	368	vessels or barges, or drilling ships, rigs or barges, or
369	369	seismic or geophysical vessels, other watercraft and
370	370	commercial fishing vessels of over five tons load displacement
371	371	as registered with the U.S. Coast Guard and licensed by the
372	372	State of Alabama Department of Conservation and Natural
373	373	Resources. Additionally, the gross proceeds from the sale or
374	374	sales of lifeboats, personal flotation devices, ring life
375	375	buoys, survival craft equipment, distress signals, EPIRB's,
376	376	fire extinguishers, injury placards, waste management plans
377	377	and logs, marine sanitation devices, navigation rulebooks,
378	378	navigation lights, sound signals, navigation day shapes, oil
379	379	placard cards, garbage placards, FCC SSL, stability
380	380	instructions, first aid equipment, compasses, anchor and radar
381	381	reflectors, general alarm systems, bilge pumps, piping, and
382	382	discharge and electronic position fixing devices which are
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412	412	used on the aforementioned watercraft.
413	413	(14) The gross proceeds of the sale or sales of fuel
414	414	oil purchased as fuel for kiln use in manufacturing
415	415	establishments.
416	416	(15) The gross proceeds of the sale or sales of
417	417	tangible personal property to county and city school boards
418	418	within the State of Alabama, independent school boards within
419	419	the State of Alabama, all educational institutions and
420	420	agencies of the State of Alabama, the counties within the
421	421	state, or any incorporated municipalities of the State of
422	422	Alabama, and private educational institutions operating within
423	423	the State of Alabama offering conventional and traditional
424	424	courses of study, such as those offered by public schools,
425	425	colleges, or universities within the State of Alabama; but not
426	426	including nurseries, day care centers, and home schools.
427	427	(16) The gross proceeds from the sale of all devices or
428	428	facilities, and all identifiable components thereof, or
429	429	materials for use therein, acquired primarily for the control,
430	430	reduction, or elimination of air or water pollution and the
431	431	gross proceeds from the sale of all identifiable components
432	432	of, or materials used or intended for use in, structures built
433	433	primarily for the control, reduction, or elimination of air
434	434	and water pollution.
435	435	(17) The gross proceeds of sales of tangible personal
436	436	property or the gross receipts of any business which the state
437	437	is prohibited from taxing under the Constitution or laws of
438	438	the United States or under the Constitution of this state.
439	439	(18) When dealers or distributors use parts taken from
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469	469	stocks owned by them in making repairs without charge for the
470	470	parts to the owner of the property repaired pursuant to
471	471	warranty agreements entered into by manufacturers, such use
472	472	shall not constitute taxable sales to the manufacturers,
473	473	distributors, or to the dealers, under this division or under
474	474	any county sales tax law.
475	475	(19) The gross proceeds received from the sale or
476	476	furnishing of food, including potato chips, candy, fruit and
477	477	similar items, soft drinks, tobacco products, and stationery
478	478	and other similar or related articles by hospital canteens
479	479	operated by Alabama state hospitals at Bryce Hospital and
480	480	Partlow State School for Mental Deficients at Tuscaloosa,
481	481	Alabama, and Searcy Hospital at Mt. Vernon, Alabama, for the
482	482	benefit of the patients therein.
483	483	(20) The gross proceeds of the sale, or sales, of
484	484	wrapping paper and other wrapping materials when used in
485	485	preparing poultry or poultry products for delivery, shipment,
486	486	or sale by the producer, processor, packer, or seller of such
487	487	poultry or poultry products, including pallets used in
488	488	shipping poultry and egg products, paper or other materials
489	489	used for lining boxes or other containers in which poultry or
490	490	poultry products are packed together with any other materials
491	491	placed in such containers for the delivery, shipment, or sale
492	492	of poultry or poultry products.
493	493	(21) The gross proceeds of the sales of all
494	494	antibiotics, hormones and hormone preparations, drugs,
495	495	medicines or medications, vitamins, minerals or other
496	496	nutrients, and all other feed ingredients including
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526	526	concentrates, supplements, and other feed ingredients when
527	527	such substances are used as ingredients in mixing and
528	528	preparing feed for fish raised to be sold on a commercial
529	529	basis, livestock, and poultry. Such exemption herein granted
530	530	shall be in addition to exemptions now provided by law for
531	531	feed for fish raised to be sold on a commercial basis,
532	532	livestock, and poultry, but not including prepared foods for
533	533	dogs or cats.
534	534	(22) The gross proceeds of the sale, or sales, of
535	535	seedlings, plants, shoots, and slips which are to be used for
536	536	planting vegetable gardens or truck farms and other
537	537	agricultural purposes. Nothing herein shall be construed to
538	538	exempt, or exclude from the computation of the tax levied,
539	539	assessed, or payable, the gross proceeds of the sale, or the
540	540	use of plants, seedlings, shoots, slips, nursery stock, and
541	541	floral products, except as hereinabove exempted.
542	542	(23) The gross proceeds of the sale, or sales, of
543	543	fabricated steel tube sections, when produced and fabricated
544	544	in this state by any person, firm, or corporation for any
545	545	vehicular tunnel for highway vehicular traffic, when sold by
546	546	the manufacturer or fabricator thereof, and also the gross
547	547	proceeds of the sale, or sales, of steel which enters into and
548	548	becomes a component part of such fabricated steel tube
549	549	sections of said tunnel.
550	550	(24) The gross proceeds from sales of admissions to any
551	551	theatrical production, symphonic or other orchestral concert,
552	552	ballet, or opera production when the concert or production is
553	553	presented by any society, association, guild, or workshop
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583	583	group, organized within this state, whose members or some of
584	584	whose members regularly and actively participate in the
585	585	concerts or productions for the purposes of providing a
586	586	creative outlet for the cultural and educational interests of
587	587	its members, and of promoting such interests for the
588	588	betterment of the community by presenting the productions to
589	589	the general public for an admission charge. The employment of
590	590	a paid director or conductor to assist in any such
591	591	presentation described in this subdivision shall not be
592	592	construed to prohibit the exemptions herein provided.
593	593	(25) The gross proceeds of sales of "herbicides" for
594	594	agricultural uses by whomsoever sold. The term herbicides, as
595	595	used in this subdivision, means any substance or mixture of
596	596	substances intended to prevent, destroy, repel, or retard the
597	597	growth of weeds or plants. The term includes preemergence
598	598	herbicides, postemergence herbicides, lay-by herbicides,
599	599	pasture herbicides, defoliant herbicides, and desiccant
600	600	herbicides.
601	601	(26) The Alabama Chapter of the Cystic Fibrosis
602	602	Research Foundation and the Jefferson Tuberculosis Sanatorium
603	603	and any of their departments or agencies, heretofore or
604	604	hereafter organized and existing in good faith in the State of
605	605	Alabama for purposes other than for pecuniary gain and not for
606	606	individual profit, shall be exempted from the computation of
607	607	the tax on the gross proceeds of all sales levied, assessed,
608	608	or payable.
609	609	(27) The gross proceeds from the sale or sales of fuel
610	610	for use or consumption aboard commercial fishing vessels are
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640	640	exempt from the computation of all sales taxes levied,
641	641	assessed, or payable under this division or levied under any
642	642	county or municipal sales tax law.
643	643	(28) The gross proceeds from the sales of rope, fishing
644	644	nets, tools, or any substitute used directly in the process of
645	645	commercial fishing by a holder of a commercial license issued
646	646	pursuant to Chapter 12 of Title 9.
647	647	(29) The gross proceeds of sales of sawdust, wood
648	648	shavings, wood chips, and other like materials sold for use as
649	649	chicken litter by poultry producers and poultry processors.
650	650	(30) The gross proceeds of the sales of all
651	651	antibiotics, hormones and hormone preparations, drugs,
652	652	medicines, and other medications including serums and
653	653	vaccines, vitamins, minerals, or other nutrients for use in
654	654	the production and growing of fish, livestock, and poultry by
655	655	whomsoever sold. The exemption herein granted shall be in
656	656	addition to the exemption provided by law for feed for fish,
657	657	livestock, and poultry, and in addition to the exemptions
658	658	provided by law for the above-enumerated substances and
659	659	products when mixed and used as ingredients in fish,
660	660	livestock, and poultry feed.
661	661	(31) The gross proceeds of the sale or sales of all
662	662	medicines prescribed by physicians for persons who are 65
663	663	years of age or older, and when the prescriptions are filled
664	664	by licensed pharmacists, shall be exempted under this division
665	665	or under any county or municipal sales tax law. The exemption
666	666	provided in this section shall not apply to any medicine
667	667	purchased in any manner other than as is herein provided.
668	668	309
669	669	310
670	670	311
671	671	312
672	672	313
673	673	314
674	674	315
675	675	316
676	676	317
677	677	318
678	678	319
679	679	320
680	680	321
681	681	322
682	682	323
683	683	324
684	684	325
685	685	326
686	686	327
687	687	328
688	688	329
689	689	330
690	690	331
691	691	332
692	692	333
693	693	334
694	694	335
695	695	336 HB375 INTRODUCEDHB375 INTRODUCED
696	696	Page 13
697	697	For the purposes of this subdivision, proof of age may
698	698	be accomplished by filing with the dispensing pharmacist any
699	699	one or more of the following documents:
700	700	a. The name and claim number as shown on a Medicare
701	701	card issued by the United States Social Security
702	702	Administration.
703	703	b. A certificate 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	c. An affidavit executed by any adult person having
707	707	knowledge of the fact that the person for whom the medicine
708	708	was prescribed is not less than 65 years of age.
709	709	For the purposes of this subdivision, any person filing
710	710	a false proof of age shall be guilty of a misdemeanor and upon
711	711	conviction thereof shall be punished by a fine of one hundred
712	712	dollars ($100).
713	713	(32) There shall be exempted from the tax levied by
714	714	this division the gross receipts of sales of grass sod of all
715	715	kinds and character when in the original state of production
716	716	or condition of preparation for sale, when the sales are made
717	717	by the producer or members of the producer's family or for the
718	718	producer by those employed by the producer to assist in the
719	719	production thereof; provided, that nothing herein shall be
720	720	construed to exempt sales of sod by a person engaged in the
721	721	business of selling plants, seedlings, nursery stock, or
722	722	floral products.
723	723	(33) The gross receipts of sales of the following items
724	724	or materials that are necessary in the farm-to-market
725	725	337
726	726	338
727	727	339
728	728	340
729	729	341
730	730	342
731	731	343
732	732	344
733	733	345
734	734	346
735	735	347
736	736	348
737	737	349
738	738	350
739	739	351
740	740	352
741	741	353
742	742	354
743	743	355
744	744	356
745	745	357
746	746	358
747	747	359
748	748	360
749	749	361
750	750	362
751	751	363
752	752	364 HB375 INTRODUCEDHB375 INTRODUCED
753	753	Page 14
754	754	production of tomatoes when such items or materials are used
755	755	by the producer or members of the producer's family or for the
756	756	producer by those employed by the producer to assist in the
757	757	production thereof: Twine for tying tomatoes, tomato stakes,
758	758	field boxes (wooden boxes used to take tomatoes from the
759	759	fields to shed), and tomato boxes used in shipments to
760	760	customers.
761	761	(34) The gross proceeds from the sale of liquefied
762	762	petroleum gas or natural gas sold to be used for agricultural
763	763	purposes.
764	764	(35) The gross receipts of sales from state nurseries
765	765	of forest tree seedlings.
766	766	(36) The gross receipts of sales of forest tree seed by
767	767	the state.
768	768	(37) The gross receipts of sales of Lespedeza bicolor
769	769	and other species of perennial plant seed and seedlings sold
770	770	for wildlife and game food production purposes by the state.
771	771	(38) The gross receipts of any aircraft manufactured,
772	772	sold, and delivered in this state if the aircraft are not
773	773	permanently domiciled in Alabama and are removed to another
774	774	state.
775	775	(39) The gross proceeds from the sale or sales of all
776	776	diesel fuel used for off-highway agricultural purposes.
777	777	(40) The gross proceeds from sales of admissions to any
778	778	sporting event that:
779	779	a. Takes place in the State of Alabama on or after
780	780	January 1, 1984, regardless of when such sales occur; and
781	781	b. Is hosted by a not-for-profit corporation organized
782	782	365
783	783	366
784	784	367
785	785	368
786	786	369
787	787	370
788	788	371
789	789	372
790	790	373
791	791	374
792	792	375
793	793	376
794	794	377
795	795	378
796	796	379
797	797	380
798	798	381
799	799	382
800	800	383
801	801	384
802	802	385
803	803	386
804	804	387
805	805	388
806	806	389
807	807	390
808	808	391
809	809	392 HB375 INTRODUCEDHB375 INTRODUCED
810	810	Page 15
811	811	and existing under the laws of the State of Alabama; and
812	812	c. Determines a national championship of a national
813	813	organization, including, but not limited to, the Professional
814	814	Golfers Association of America, the Tournament Players
815	815	Association, the United States Golf Association, the United
816	816	States Tennis Association, and the National Collegiate
817	817	Athletic Association; and
818	818	d. Has not been held in the State of Alabama on more
819	819	than one prior occasion, provided, however, that for such
820	820	purpose the Professional Golfers Association Championship, the
821	821	United States Open Golf Championship, the United States
822	822	Amateur Golf Championship of the United States Golf
823	823	Association, and the United States Open Tennis Championship
824	824	shall each be treated as a separate event.
825	825	(41) The gross receipts from the sale of any aircraft
826	826	and replacement parts, components, systems, supplies, and
827	827	sundries affixed or used on the aircraft and ground support
828	828	equipment and vehicles used by or for the aircraft to or by a
829	829	certificated or licensed air carrier with a hub operation
830	830	within this state, for use in conducting intrastate,
831	831	interstate, or foreign commerce for transporting people or
832	832	property by air. For the purpose of this subdivision, the
833	833	words "hub operation within this state" shall be construed to
834	834	have both of the following criteria:
835	835	a. There originates from the location 15 or more flight
836	836	departures and five or more different first-stop destinations
837	837	five days per week for six or more months during the calendar
838	838	year.
839	839	393
840	840	394
841	841	395
842	842	396
843	843	397
844	844	398
845	845	399
846	846	400
847	847	401
848	848	402
849	849	403
850	850	404
851	851	405
852	852	406
853	853	407
854	854	408
855	855	409
856	856	410
857	857	411
858	858	412
859	859	413
860	860	414
861	861	415
862	862	416
863	863	417
864	864	418
865	865	419
866	866	420 HB375 INTRODUCEDHB375 INTRODUCED
867	867	Page 16
868	868	b. Passengers or property or both are regularly
869	869	exchanged at the location between flights of the same or a
870	870	different certificated or licensed air carrier.
871	871	(42) The gross receipts from the sale of hot or cold
872	872	food and beverage products sold to or by a certificated or
873	873	licensed air carrier with a hub operation within this state,
874	874	for use in conducting intrastate, interstate, or foreign
875	875	commerce for transporting people or property by air. For the
876	876	purpose of this subdivision, the words "hub operation within
877	877	this state" shall be construed to have all of the following
878	878	criteria:
879	879	a. There originates from the location 15 or more flight
880	880	departures and five or more different first-stop destinations
881	881	five days per week for six or more months during the calendar
882	882	year.
883	883	b. Passengers or property or both are regularly
884	884	exchanged at the location between flights of the same or a
885	885	different certificated or licensed air carrier.
886	886	(43) The gross receipts from the sale of any aviation
887	887	jet fuel to a certificated or licensed air carrier purchased
888	888	for use in scheduled all-cargo operations being conducted on
889	889	international flights or in international commerce. For
890	890	purposes of this subdivision, the following words or terms
891	891	shall be defined and interpreted as follows:
892	892	a. Air Carrier. Any person, firm, corporation, or
893	893	entity undertaking by any means, directly or indirectly, to
894	894	provide air transportation.
895	895	b. All-Cargo Operations. Any flight conducted by an air
896	896	421
897	897	422
898	898	423
899	899	424
900	900	425
901	901	426
902	902	427
903	903	428
904	904	429
905	905	430
906	906	431
907	907	432
908	908	433
909	909	434
910	910	435
911	911	436
912	912	437
913	913	438
914	914	439
915	915	440
916	916	441
917	917	442
918	918	443
919	919	444
920	920	445
921	921	446
922	922	447
923	923	448 HB375 INTRODUCEDHB375 INTRODUCED
924	924	Page 17
925	925	carrier for compensation or hire other than a passenger
926	926	carrying flight, except passengers as specified in 14 C.F.R. §
927	927	121.583(a) or 14 C.F.R. § 135.85, as amended.
928	928	c. International Commerce. Any air carrier engaged in
929	929	all-cargo operations transporting goods for compensation or
930	930	hire on international flights.
931	931	d. International Flights. Any air carrier conducting
932	932	scheduled all-cargo operations between any point within the 50
933	933	states of the United States and the District of Columbia and
934	934	any point outside the 50 states of the United States and the
935	935	District of Columbia, including any interim stops within the
936	936	United States so long as the ultimate origin or destination of
937	937	the aircraft is outside the United States and the District of
938	938	Columbia.
939	939	(44) The gross proceeds of the sale or sales of the
940	940	following:
941	941	a. Drill pipe, casing, tubing, and other pipe used for
942	942	the exploration for or production of oil, gas, sulphur, or
943	943	other minerals in offshore federal waters.
944	944	b. Tangible personal property exclusively used for the
945	945	exploration for or production of oil, gas, sulphur, or other
946	946	minerals in offshore federal waters.
947	947	c. Fuel and supplies for use or consumption aboard
948	948	boats, ships, aircraft, and towing vessels when used
949	949	exclusively in transporting persons or property between a
950	950	point in Alabama and a point or points in offshore federal
951	951	waters for the exploration for or production of oil, gas,
952	952	sulphur, or other minerals in offshore federal waters.
953	953	449
954	954	450
955	955	451
956	956	452
957	957	453
958	958	454
959	959	455
960	960	456
961	961	457
962	962	458
963	963	459
964	964	460
965	965	461
966	966	462
967	967	463
968	968	464
969	969	465
970	970	466
971	971	467
972	972	468
973	973	469
974	974	470
975	975	471
976	976	472
977	977	473
978	978	474
979	979	475
980	980	476 HB375 INTRODUCEDHB375 INTRODUCED
981	981	Page 18
982	982	d. Drilling equipment that is used for the exploration
983	983	for or production of oil, gas, sulphur, or other minerals,
984	984	that is built for exclusive use outside this state and that
985	985	is, on completion, removed forthwith from this state.
986	986	The delivery of items exempted by this subdivision to
987	987	the purchaser or lessee in this state does not disqualify the
988	988	purchaser or lessee from the exemption if the property is
989	989	removed from the state by any means, including by the use of
990	990	the purchaser's or lessee's own facilities.
991	991	The shipment to a place in this state of equipment
992	992	exempted by this subdivision for further assembly or
993	993	fabrication does not disqualify the purchaser or lessee from
994	994	the exemption if on completion of the further assembly or
995	995	fabrication the equipment is removed forthwith from this
996	996	state. This subdivision applies to a sale that may occur when
997	997	the equipment exempted is further assembled or fabricated if
998	998	on completion the equipment is removed forthwith from this
999	999	state.
1000	1000	(45) The gross receipts derived from all bingo games
1001	1001	and operations that are conducted in compliance with validly
1002	1002	enacted legislation authorizing the conduct of such games and
1003	1003	operations, and which comply with the distribution
1004	1004	requirements of the applicable local laws; provided that the
1005	1005	exemption from sales taxation granted by this subdivision
1006	1006	shall apply only to gross receipts taxable under subdivision
1007	1007	(2) of Section 40-23-2. It is further provided that this
1008	1008	exemption shall not apply to any gross receipts from the sale
1009	1009	of tangible personal property, such as concessions, novelties,
1010	1010	477
1011	1011	478
1012	1012	479
1013	1013	480
1014	1014	481
1015	1015	482
1016	1016	483
1017	1017	484
1018	1018	485
1019	1019	486
1020	1020	487
1021	1021	488
1022	1022	489
1023	1023	490
1024	1024	491
1025	1025	492
1026	1026	493
1027	1027	494
1028	1028	495
1029	1029	496
1030	1030	497
1031	1031	498
1032	1032	499
1033	1033	500
1034	1034	501
1035	1035	502
1036	1036	503
1037	1037	504 HB375 INTRODUCEDHB375 INTRODUCED
1038	1038	Page 19
1039	1039	food, beverages, etc. The exemption provided for in this
1040	1040	section shall be limited to those games and operations by
1041	1041	organizations that have qualified for exemption under the
1042	1042	provisions of 26 U.S.C. § 501 (c) (3), (4), (7), (8), (10), or
1043	1043	(19), or which are defined in 26 U.S.C. § 501(d).
1044	1044	(46) The gross receipts derived from the sale or sales
1045	1045	of fruit or other agricultural products by the person or
1046	1046	company, as defined in Section 40-23-1, that planted or
1047	1047	cultivated and harvested the fruit or agricultural product,
1048	1048	when the land is owned or leased by the seller.
1049	1049	(47) The gross receipts derived from the sale or sales
1050	1050	of all domestically mined or produced coal, coke, and coke
1051	1051	by-products used in cogeneration plants.
1052	1052	(48) The gross receipts from the sale or sales of
1053	1053	metal, other than gold or silver, when such metal is purchased
1054	1054	for the purpose of transferring such metal to an investment
1055	1055	trust in exchange for shares or other units, each of which are
1056	1056	both publicly traded and represent fractional undivided
1057	1057	beneficial interests in the trust's net assets, including
1058	1058	metal stored in warehouses located in this state, as well as
1059	1059	the gross proceeds from the sale or other transfer of such
1060	1060	metal to or from the investment trust in exchange for shares
1061	1061	or other units that are publicly traded and represent
1062	1062	fractional undivided beneficial interests in the trust's net
1063	1063	assets but not to the extent that metal is transferred to or
1064	1064	from the investment trust in exchange for consideration other
1065	1065	than such publicly traded shares or other units. For purposes
1066	1066	of this subdivision, the term "metals" includes, but is not
1067	1067	505
1068	1068	506
1069	1069	507
1070	1070	508
1071	1071	509
1072	1072	510
1073	1073	511
1074	1074	512
1075	1075	513
1076	1076	514
1077	1077	515
1078	1078	516
1079	1079	517
1080	1080	518
1081	1081	519
1082	1082	520
1083	1083	521
1084	1084	522
1085	1085	523
1086	1086	524
1087	1087	525
1088	1088	526
1089	1089	527
1090	1090	528
1091	1091	529
1092	1092	530
1093	1093	531
1094	1094	532 HB375 INTRODUCEDHB375 INTRODUCED
1095	1095	Page 20
1096	1096	limited to, copper, aluminum, nickel, zinc, tin, lead, and
1097	1097	other similar metals typically used in commercial and
1098	1098	industrial applications.
1099	1099	(49)a. For the period commencing on October 1, 2012,
1100	1100	and ending May 30, 2027, the gross receipts from the sale of
1101	1101	parts, components, and systems that become a part of a fixed
1102	1102	or rotary wing military aircraft or certified transport
1103	1103	category aircraft that undergoes conversion, reconfiguration,
1104	1104	or general maintenance so long as the address of the aircraft
1105	1105	for FAA registration is not in the state; provided, however,
1106	1106	that this exemption shall not apply to a local sales tax
1107	1107	unless previously exempted by local law or approved by
1108	1108	resolution of the local governing body.
1109	1109	b. The exemption authorized by this subdivision shall
1110	1110	not be available for sales of parts, components, or systems
1111	1111	for new contracts or projects entered into after May 30, 2027,
1112	1112	unless the Legislature enacts legislation to continue or
1113	1113	reinstate the exemption for new contracts or projects after
1114	1114	that date. No action or inaction on the part of the
1115	1115	Legislature shall reduce, suspend, or disqualify sales of
1116	1116	parts, components, or systems from the exemption in any past
1117	1117	year or future years until May 30, 2030, with respect to
1118	1118	contracts or projects entered into on or before May 30, 2027;
1119	1119	it being the sole intent that failure of the Legislature to
1120	1120	enact legislation to reinstate the exemption for new contracts
1121	1121	or projects after May 30, 2027, shall affect only the
1122	1122	availability of the exemption to new contracts and projects
1123	1123	after that date and shall not affect availability of the
1124	1124	533
1125	1125	534
1126	1126	535
1127	1127	536
1128	1128	537
1129	1129	538
1130	1130	539
1131	1131	540
1132	1132	541
1133	1133	542
1134	1134	543
1135	1135	544
1136	1136	545
1137	1137	546
1138	1138	547
1139	1139	548
1140	1140	549
1141	1141	550
1142	1142	551
1143	1143	552
1144	1144	553
1145	1145	554
1146	1146	555
1147	1147	556
1148	1148	557
1149	1149	558
1150	1150	559
1151	1151	560 HB375 INTRODUCEDHB375 INTRODUCED
1152	1152	Page 21
1153	1153	exemption for contracts or projects entered into on or before
1154	1154	May 30, 2027, for which the exemption shall be available until
1155	1155	May 30, 2030.
1156	1156	(50) The gross proceeds from the sale or sales within
1157	1157	school buildings of lunches to pupils of kindergarten,
1158	1158	grammar, and high schools, either public or private, that are
1159	1159	not sold for profit.
1160	1160	(51) The gross proceeds of services provided by
1161	1161	photographers, including, but not limited to, sitting fees and
1162	1162	consultation fees, even when provided as part of a transaction
1163	1163	ultimately involving the sale of one or more photographs, so
1164	1164	long as the exempt services are separately stated to the
1165	1165	customer on a bill of sale, invoice, or like memorialization
1166	1166	of the transaction. For transactions occurring before October
1167	1167	1, 2017, neither the Department of Revenue nor local tax
1168	1168	officials may seek payment for sales tax not collected. With
1169	1169	regard to such transactions in which sales tax was collected
1170	1170	and remitted on services provided by photographers, neither
1171	1171	the taxpayer nor the entity remitting sales tax shall have the
1172	1172	right to seek refund of such tax.
1173	1173	(52) a. For the period commencing on June 1, 2018, and
1174	1174	ending 10 years thereafter, unless extended by an act of the
1175	1175	Legislature, the gross proceeds of sales of bullion or money,
1176	1176	as defined in Section 40-1-1(7).
1177	1177	b. For purposes of this subdivision, the following
1178	1178	words or terms shall be defined and interpreted as follows:
1179	1179	1. Bullion. Gold, silver, platinum, palladium, or a
1180	1180	combination of each precious metal, that has gone through a
1181	1181	561
1182	1182	562
1183	1183	563
1184	1184	564
1185	1185	565
1186	1186	566
1187	1187	567
1188	1188	568
1189	1189	569
1190	1190	570
1191	1191	571
1192	1192	572
1193	1193	573
1194	1194	574
1195	1195	575
1196	1196	576
1197	1197	577
1198	1198	578
1199	1199	579
1200	1200	580
1201	1201	581
1202	1202	582
1203	1203	583
1204	1204	584
1205	1205	585
1206	1206	586
1207	1207	587
1208	1208	588 HB375 INTRODUCEDHB375 INTRODUCED
1209	1209	Page 22
1210	1210	refining process and for which the item's value depends on its
1211	1211	mass and purity, and not on its form, numismatic value, or
1212	1212	other value. The term includes bullion in the form of bars,
1213	1213	ingots, rounds, or coins that meet the requirements set forth
1214	1214	above. Qualifying bullion may contain other metals or
1215	1215	substances, provided that the other substances are minimal in
1216	1216	value compared with the value of the gold, silver, platinum,
1217	1217	or palladium and the other substances do not add value to the
1218	1218	item. For purposes of this subparagraph, "gold, silver,
1219	1219	platinum, or palladium" does not include jewelry or works of
1220	1220	art.
1221	1221	2. Mass. An item's mass is its weight in precious
1222	1222	metal.
1223	1223	3. Numismatic Value. An external value above and beyond
1224	1224	the base value of the underlying precious metal, due to the
1225	1225	item's rarity, condition, age, or other external factor.
1226	1226	4. Purity. An item's purity is the proportion of
1227	1227	precious metal contained within.
1228	1228	c. In order for bullion to qualify for the sales tax
1229	1229	exemption, gold, silver, platinum, and palladium items must
1230	1230	meet all of the following requirements:
1231	1231	1. Must be refined.
1232	1232	2. Must contain at least 80 percent gold, silver,
1233	1233	platinum, or palladium or some combination of these metals.
1234	1234	3. The sales price of the item must fluctuate with and
1235	1235	depend on the market price of the underlying precious metal,
1236	1236	and not on the item's rarity, condition, age, or other
1237	1237	external factor.
1238	1238	589
1239	1239	590
1240	1240	591
1241	1241	592
1242	1242	593
1243	1243	594
1244	1244	595
1245	1245	596
1246	1246	597
1247	1247	598
1248	1248	599
1249	1249	600
1250	1250	601
1251	1251	602
1252	1252	603
1253	1253	604
1254	1254	605
1255	1255	606
1256	1256	607
1257	1257	608
1258	1258	609
1259	1259	610
1260	1260	611
1261	1261	612
1262	1262	613
1263	1263	614
1264	1264	615
1265	1265	616 HB375 INTRODUCEDHB375 INTRODUCED
1266	1266	Page 23
1267	1267	(53) a. The gross proceeds of the initial retail sales
1268	1268	of adaptive equipment that is permanently affixed to a motor
1269	1269	vehicle.
1270	1270	b. For the purposes of this subdivision, the following
1271	1271	words or terms shall be defined and interpreted as follows:
1272	1272	1. Adaptive Equipment. Equipment not generally used by
1273	1273	persons with normal mobility that is appropriate for use in a
1274	1274	motor vehicle and that is not normally provided by a motor
1275	1275	vehicle manufacturer.
1276	1276	2. Motor Vehicle. A vehicle as defined in Section
1277	1277	40-12-240.
1278	1278	3. Motor Vehicle Manufacturer. Every person engaged in
1279	1279	the business of constructing or assembling vehicles or
1280	1280	manufactured homes.
1281	1281	c. In order to qualify for the exemption provided for
1282	1282	herein, the adaptive equipment must be separately stated to
1283	1283	the customer on a bill of sale, invoice, or like
1284	1284	memorialization of the transaction.
1285	1285	(54) For the period commencing on October 1, 2022, and
1286	1286	ending September 30, 2027, unless extended by an act of the
1287	1287	Legislature, the gross receipts derived from the sale of
1288	1288	producer value added agricultural products when the sale is
1289	1289	made by the producer or by the producer's immediate family, or
1290	1290	for the producer by the producer's employees.
1291	1291	(55) The gross proceeds derived from the retail sale of
1292	1292	gun safes and gun safety devices. For purposes of this
1293	1293	subdivision, the following words have the following meanings:
1294	1294	a. Gun safe. A locking container or other enclosure
1295	1295	617
1296	1296	618
1297	1297	619
1298	1298	620
1299	1299	621
1300	1300	622
1301	1301	623
1302	1302	624
1303	1303	625
1304	1304	626
1305	1305	627
1306	1306	628
1307	1307	629
1308	1308	630
1309	1309	631
1310	1310	632
1311	1311	633
1312	1312	634
1313	1313	635
1314	1314	636
1315	1315	637
1316	1316	638
1317	1317	639
1318	1318	640
1319	1319	641
1320	1320	642
1321	1321	643
1322	1322	644 HB375 INTRODUCEDHB375 INTRODUCED
1323	1323	Page 24
1324	1324	equipped with a padlock, key lock, combination lock, or other
1325	1325	locking device that is designed and intended for the secure
1326	1326	storage of one or more firearms.
1327	1327	b. Gun safety device. Any integral device to be
1328	1328	equipped or installed on a firearm that permits a user to
1329	1329	program the firearm to operate only for specified persons
1330	1330	designated by the user through computerized locking devices or
1331	1331	other means integral to and permanently part of the firearm.
1332	1332	(b) Any violation of any provision of this section
1333	1333	shall be punishable in a court of competent jurisdiction by a
1334	1334	fine of not less than five hundred dollars ($500) and no more
1335	1335	than two thousand dollars ($2,000) and imprisonment of not
1336	1336	less than six months nor more than one year in the county
1337	1337	jail."
1338	1338	Section 2. This act shall become effective October 1,
1339	1339	2023, following its passage and approval by the Governor, or
1340	1340	its otherwise becoming law.
1341	1341	645
1342	1342	646
1343	1343	647
1344	1344	648
1345	1345	649
1346	1346	650
1347	1347	651
1348	1348	652
1349	1349	653
1350	1350	654
1351	1351	655
1352	1352	656
1353	1353	657
1354	1354	658
1355	1355	659
1356	1356	660
1357	1357	661