AL
Alabama House Bill HB479

Alabama 2023 Regular Session

Alabama House Bill HB479 Compare Versions

OldNewDifferences
1-HB479ENROLLED
1+HB479INTRODUCED
22 Page 0
3-E0XQ22-3
3+E0XQ22-1
44 By Representatives Garrett, McClammy, Crawford, Whitt,
55 Reynolds, Standridge, Carns, Hill, Clouse, Wood (R), Rehm,
66 Woods, Givan, Lomax, Cole, Lamb, Shirey, Yarbrough, Stringer,
77 Rigsby, Ellis, Colvin, Kitchens, Shaw, Treadaway, Bedsole,
88 Fincher, Estes, Butler, Gidley, Robertson, Hulsey, Hall,
99 Underwood, Harbison, Brown, Kiel, Almond, Collins, Shaver,
1010 Wood (D), Shedd, Sellers, Morris, Moore (M), Paschal,
11-Lipscomb, Hurst, Marques, Sorrells, Pettus, Smith, Ingram,
12-Givens, Jones, Holk-Jones, Fidler, Faulkner, Simpson, Bracy,
13-Plump, Boyd, Drummond, Clarke, Daniels, Hollis, Gray, Ensler,
11+Lipscomb, Marques, Sorrells, Pettus, Smith, Ingram, Givens,
12+Jones, Holk-Jones, Fidler, Faulkner, Simpson, Bracy, Plump,
13+Boyd, Drummond, Forte, Clarke, Daniels, Hollis, Gray, Ensler,
1414 Kirkland, Lawrence, Bolton, Easterbrook, Baker, Robbins,
1515 Rogers, Blackshear, Stubbs, DuBose, Oliver, Ledbetter,
1616 Whorton, Wadsworth, Lovvorn, Hammett, Chestnut, Rafferty,
1717 Sells, McCampbell, Stadthagen, Moore (P), Harrison, Wilcox,
1818 Tillman, England, Travis, Starnes, Mooney, Hassell, Warren
1919 RFD: Ways and Means Education
2020 First Read: 16-May-23
2121 2023 Regular Session
2222 1
2323 2
2424 3
2525 4
2626 5
2727 6
2828 7
2929 8
3030 9
3131 10
3232 11
3333 12
3434 13
3535 14
3636 15
3737 16
3838 17
3939 18
40-19 HB479 EnrolledHB479 Enrolled
40+19 E0XQ22-1 04/24/2023 KHF (F) KHF 2023-1719
4141 Page 1
42-Enrolled, An Act,
43-Relating to sales and use taxes; to amend Sections
44-40-23-1, 40-23-2, 40-23-60, and 40-23-61, Code of Alabama
45-1975, to define "food" and begin reducing the state sales and
46-use tax on food on September 1, 2023; to require certain
47-growth targets in the Education Trust Fund for future sales
48-tax reductions on food; to establish the sales and use tax
49-rate on food for purposes of county and municipal sales and
50-use taxes as the existing general or retail sales and use tax
51-rate; and to provide for the levy of sales and use tax on food
52-by counties and municipalities.
53-BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
54-Section 1. Sections 40-23-1, 40-23-2, 40-23-60, and
55-40-23-61, Code of Alabama 1975, are amended to read as
56-follows:
57-"§40-23-1
58-(a) For the purpose of this division, the following
59-terms shall have the respective meanings ascribed by this
60-section:
61-(1) PERSON or COMPANY. Used interchangeably, includes
62-any individual, firm, copartnership, association, corporation,
63-receiver, trustee, or any other group or combination acting as
64-a unit and the plural as well as the singular number, unless
65-the intention to give a more limited meaning is disclosed by
66-the context.
67-(2) DEPARTMENT. The Department of Revenue of the State
42+SYNOPSIS:
43+Under existing law, the state imposes sales or
44+use taxes upon certain persons, firms, or corporations.
45+Sales of certain items are taxed at a reduced rate.
46+"Food" is not a defined term and is taxed at the
47+general rate. Sales of other items are exempt from the
48+taxes.
49+This bill would define "food" for purposes of
50+sales and use taxes and begin reducing the state sales
51+and use tax on food on September 1, 2023. Future rate
52+reductions would be contingent upon certain growth
53+requirements in the Education Trust Fund.
54+This bill would establish the sales and use tax
55+rate on food for purposes of county and municipal sales
56+and use taxes as the existing general or retail sales
57+tax rate on the effective date of this act and allow a
58+county and municipal election to reduce the sales tax
59+rate or exempt food from local sales and use taxes.
60+A BILL
61+TO BE ENTITLED
62+AN ACT
63+Relating to sales taxes; to amend Section 40-23-1, as
6864 1
6965 2
7066 3
7167 4
7268 5
7369 6
7470 7
7571 8
7672 9
7773 10
7874 11
7975 12
8076 13
8177 14
8278 15
8379 16
8480 17
8581 18
8682 19
8783 20
8884 21
8985 22
9086 23
9187 24
9288 25
9389 26
9490 27
95-28 HB479 EnrolledHB479 Enrolled
96-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
91+28 HB479 INTRODUCEDHB479 INTRODUCED
9792 Page 2
98-of Alabama.
99-(3) COMMISSIONER. The Commissioner of Revenue of the
100-State of Alabama.
101-(4) TAX YEAR or TAXABLE YEAR. The calendar year.
102-(5) SALE or SALES. Installment and credit sales and the
103-exchange of properties as well as the sale thereof for money,
104-every closed transaction constituting a sale. Provided,
105-however, a transaction shall not be closed or a sale completed
106-until the time and place when and where title is transferred
107-by the seller or seller's agent to the purchaser or
108-purchaser's agent, and for the purpose of determining transfer
109-of title, a common carrier or the U.S. Postal Service shall be
110-deemed to be the agent of the seller, regardless of any F.O.B.
111-point and regardless of who selects the method of
112-transportation, and regardless of by whom or the method by
113-which freight, postage, or other transportation charge is
114-paid. Provided further that, where billed as a separate item
115-to and paid by the purchaser, the freight, postage, or other
116-transportation charge paid to a common carrier or the U.S.
117-Postal Service is not a part of the selling price.
118-(6) GROSS PROCEEDS OF SALES. The value proceeding or
119-accruing from the sale of tangible personal property, and
120-including the proceeds from the sale of any property handled
121-on consignment by the taxpayer, including merchandise of any
122-kind and character without any deduction on account of the
123-cost of the property sold, the cost of the materials used,
124-labor or service cost, interest paid, any consumer excise
125-taxes that may be included within the sales price of the
93+last amended by Acts 2022-199 and 2022-291, 2022 Regular
94+Session, Code of Alabama 1975, Section 40-23-2, as last
95+amended by Act 2022-346, 2022 Regular Session, Code of Alabama
96+1975, Section 40-23-60, as last amended by Act 2022-199, 2022
97+Regular Session, Code of Alabama 1975, and Section 40-23-61,
98+Code of Alabama 1975, to define "food" and begin reducing the
99+state sales and use tax on food on September 1, 2023; to
100+require certain growth targets in the Education Trust Fund for
101+future sales tax reductions on food; to establish the sales
102+and use tax rate on food for purposes of county and municipal
103+sales and use taxes as the existing general or retail sales
104+and use tax rate; and to authorize a county and municipality
105+to reduce the sales and use tax rate or exempt food from local
106+sales and use taxes.
107+BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
108+Section 1. Section 40-23-1, as last amended by Acts
109+2022-199 and 2022-291 of the 2022 Regular Session, Code of
110+Alabama 1975, Section 40-23-2, as last amended by Act 2022-346
111+of the 2022 Regular Session, Code of Alabama 1975, Section
112+40-23-60, as last amended by Act 2022-199 of the 2022 Regular
113+Session, Code of Alabama 1975, and Section 40-23-61, Code of
114+Alabama 1975, are amended to read as follows:
115+"§40-23-1
116+(a) For the purpose of this division, the following
117+terms shall have the respective meanings ascribed by this
118+section:
119+(1) PERSON or COMPANY. Used interchangeably, includes
120+any individual, firm, copartnership, association, corporation,
126121 29
127122 30
128123 31
129124 32
130125 33
131126 34
132127 35
133128 36
134129 37
135130 38
136131 39
137132 40
138133 41
139134 42
140135 43
141136 44
142137 45
143138 46
144139 47
145140 48
146141 49
147142 50
148143 51
149144 52
150145 53
151146 54
152147 55
153-56 HB479 EnrolledHB479 Enrolled
154-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
148+56 HB479 INTRODUCEDHB479 INTRODUCED
155149 Page 3
156-property sold, or any other expenses whatsoever, and without
157-any deductions on account of losses; provided, that cash
158-discounts allowed and taken on sales shall not be included,
159-and "gross proceeds of sales" shall not include the sale price
160-of property returned by customers when the full sales price
161-thereof is refunded either in cash or by credit. The term
162-"gross proceeds of sale" shall also mean and include the
163-reasonable and fair market value of any tangible personal
164-property previously purchased at wholesale which is withdrawn
165-or used from the business or stock and used or consumed in
166-connection with a business, and shall also mean and include
167-the reasonable and fair market value of any tangible personal
168-property previously purchased at wholesale which is withdrawn
169-from the business or stock and used or consumed by any person
170-so withdrawing the same, except property that has been
171-previously withdrawn from business or stock and so used or
172-consumed with respect to which property the tax has been paid
173-because of previous withdrawal, use, or consumption, except
174-property that enters into and becomes an ingredient or
175-component part of tangible personal property or products
176-manufactured or compounded for sale and not for the personal
177-and private use or consumption of any person so withdrawing,
178-using, or consuming the same, and except refinery, residue, or
179-fuel gas, whether in a liquid or gaseous state, that has been
180-generated by, or is otherwise a by-product of, a
181-petroleum-refining process, which gas is then utilized in the
182-process to generate heat or is otherwise utilized in the
183-distillation or refining of petroleum products.
150+receiver, trustee, or any other group or combination acting as
151+a unit and the plural as well as the singular number, unless
152+the intention to give a more limited meaning is disclosed by
153+the context.
154+(2) DEPARTMENT. The Department of Revenue of the State
155+of Alabama.
156+(3) COMMISSIONER. The Commissioner of Revenue of the
157+State of Alabama.
158+(4) TAX YEAR or TAXABLE YEAR. The calendar year.
159+(5) SALE or SALES. Installment and credit sales and the
160+exchange of properties as well as the sale thereof for money,
161+every closed transaction constituting a sale. Provided,
162+however, a transaction shall not be closed or a sale completed
163+until the time and place when and where title is transferred
164+by the seller or seller's agent to the purchaser or
165+purchaser's agent, and for the purpose of determining transfer
166+of title, a common carrier or the U.S. Postal Service shall be
167+deemed to be the agent of the seller, regardless of any F.O.B.
168+point and regardless of who selects the method of
169+transportation, and regardless of by whom or the method by
170+which freight, postage, or other transportation charge is
171+paid. Provided further that, where billed as a separate item
172+to and paid by the purchaser, the freight, postage, or other
173+transportation charge paid to a common carrier or the U.S.
174+Postal Service is not a part of the selling price.
175+(6) GROSS PROCEEDS OF SALES. The value proceeding or
176+accruing from the sale of tangible personal property, and
177+including the proceeds from the sale of any property handled
184178 57
185179 58
186180 59
187181 60
188182 61
189183 62
190184 63
191185 64
192186 65
193187 66
194188 67
195189 68
196190 69
197191 70
198192 71
199193 72
200194 73
201195 74
202196 75
203197 76
204198 77
205199 78
206200 79
207201 80
208202 81
209203 82
210204 83
211-84 HB479 EnrolledHB479 Enrolled
212-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
205+84 HB479 INTRODUCEDHB479 INTRODUCED
213206 Page 4
214-In the case of the retail sale of equipment,
215-accessories, fixtures, and other similar tangible personal
216-property used in connection with the sale of commercial mobile
217-services as defined herein, or in connection with satellite
218-television services, at a price below cost, "gross proceeds of
219-sale" shall only include the stated sales price thereof and
220-shall not include any sales commission or rebate received by
221-the seller as a result of the sale. As used herein, the term
222-"commercial mobile services" shall have the same meaning as
223-that term has in 47 U.S.C. §§ 153(n) and 332(d), as in effect
224-from time to time.
225-(7) TAXPAYER. Any person liable for taxes hereunder.
226-(8) GROSS RECEIPTS. The value proceeding or accruing
227-from the sale of tangible personal property, including
228-merchandise and commodities of any kind and character, all
229-receipts actual and accrued, by reason of any business engaged
230-in, not including, however, interest, discounts, rentals of
231-real estate, or royalties, and without any deduction on
232-account of the cost of the property sold, the cost of the
233-materials used, labor or service cost, interest paid, any
234-consumer excise taxes that may be included in the sales price
235-of the property sold, or any other expenses whatsoever and
236-without any deductions on account of losses. The term "gross
237-receipts" shall also mean and include the reasonable and fair
238-market value of any tangible personal property previously
239-purchased at wholesale which is withdrawn or used from the
240-business or stock and used or consumed in connection with a
241-business, and shall also mean and include the reasonable and
207+on consignment by the taxpayer, including merchandise of any
208+kind and character without any deduction on account of the
209+cost of the property sold, the cost of the materials used,
210+labor or service cost, interest paid, any consumer excise
211+taxes that may be included within the sales price of the
212+property sold, or any other expenses whatsoever, and without
213+any deductions on account of losses; provided, that cash
214+discounts allowed and taken on sales shall not be included,
215+and "gross proceeds of sales" shall not include the sale price
216+of property returned by customers when the full sales price
217+thereof is refunded either in cash or by credit. The term
218+"gross proceeds of sale" shall also mean and include the
219+reasonable and fair market value of any tangible personal
220+property previously purchased at wholesale which is withdrawn
221+or used from the business or stock and used or consumed in
222+connection with a business, and shall also mean and include
223+the reasonable and fair market value of any tangible personal
224+property previously purchased at wholesale which is withdrawn
225+from the business or stock and used or consumed by any person
226+so withdrawing the same, except property that has been
227+previously withdrawn from business or stock and so used or
228+consumed with respect to which property the tax has been paid
229+because of previous withdrawal, use, or consumption, except
230+property that enters into and becomes an ingredient or
231+component part of tangible personal property or products
232+manufactured or compounded for sale and not for the personal
233+and private use or consumption of any person so withdrawing,
234+using, or consuming the same, and except refinery, residue, or
242235 85
243236 86
244237 87
245238 88
246239 89
247240 90
248241 91
249242 92
250243 93
251244 94
252245 95
253246 96
254247 97
255248 98
256249 99
257250 100
258251 101
259252 102
260253 103
261254 104
262255 105
263256 106
264257 107
265258 108
266259 109
267260 110
268261 111
269-112 HB479 EnrolledHB479 Enrolled
270-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
262+112 HB479 INTRODUCEDHB479 INTRODUCED
271263 Page 5
272-fair market value of any tangible personal property previously
273-purchased at wholesale which is withdrawn from the business or
274-stock and used or consumed by any person so withdrawing the
275-same, except property which has been previously withdrawn from
276-business or stock and so used or consumed and with respect to
277-which property the tax has been paid because of previous
278-withdrawal, use, or consumption, except property which enters
279-into and becomes an ingredient or component part of tangible
280-personal property or products manufactured or compounded for
281-sale as provided in subdivision (9) and not for the personal
282-and private use or consumption of any person so withdrawing,
283-using, or consuming the same, and except refinery, residue, or
284264 fuel gas, whether in a liquid or gaseous state, that has been
285265 generated by, or is otherwise a by-product of, a
286266 petroleum-refining process, which gas is then utilized in the
287267 process to generate heat or is otherwise utilized in the
288268 distillation or refining of petroleum products.
289-(9) WHOLESALE SALE or SALE AT WHOLESALE. Any one of the
290-following:
291-a. A sale of tangible personal property by wholesalers
292-to licensed retail merchants, jobbers, dealers, or other
293-wholesalers for resale and does not include a sale by
294-wholesalers to users or consumers, not for resale.
295-b. A sale of tangible personal property or products,
296-including iron ore, and including the furnished container and
297-label of the property or products, to a manufacturer or
298-compounder which enter into and become an ingredient or
299-component part of the tangible personal property or products
269+In the case of the retail sale of equipment,
270+accessories, fixtures, and other similar tangible personal
271+property used in connection with the sale of commercial mobile
272+services as defined herein, or in connection with satellite
273+television services, at a price below cost, "gross proceeds of
274+sale" shall only include the stated sales price thereof and
275+shall not include any sales commission or rebate received by
276+the seller as a result of the sale. As used herein, the term
277+"commercial mobile services" shall have the same meaning as
278+that term has in 47 U.S.C. §§ 153(n) and 332(d), as in effect
279+from time to time.
280+(7) TAXPAYER. Any person liable for taxes hereunder.
281+(8) GROSS RECEIPTS. The value proceeding or accruing
282+from the sale of tangible personal property, including
283+merchandise and commodities of any kind and character, all
284+receipts actual and accrued, by reason of any business engaged
285+in, not including, however, interest, discounts, rentals of
286+real estate, or royalties, and without any deduction on
287+account of the cost of the property sold, the cost of the
288+materials used, labor or service cost, interest paid, any
289+consumer excise taxes that may be included in the sales price
290+of the property sold, or any other expenses whatsoever and
291+without any deductions on account of losses. The term "gross
300292 113
301293 114
302294 115
303295 116
304296 117
305297 118
306298 119
307299 120
308300 121
309301 122
310302 123
311303 124
312304 125
313305 126
314306 127
315307 128
316308 129
317309 130
318310 131
319311 132
320312 133
321313 134
322314 135
323315 136
324316 137
325317 138
326318 139
327-140 HB479 EnrolledHB479 Enrolled
328-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
319+140 HB479 INTRODUCEDHB479 INTRODUCED
329320 Page 6
330-that the manufacturer or compounder manufactures or compounds
331-for sale, whether or not the tangible personal property or
332-product used in manufacturing or compounding a finished
333-product is used with the intent that it becomes a component of
334-the finished product; provided, however, that it is the intent
335-of this section that no sale of capital equipment, machinery,
336-tools, or product shall be included in the term "wholesale
337-sale." The term "capital equipment, machinery, tools, or
338-product" shall mean property that is subject to depreciation
339-allowances for Alabama income tax purposes.
340-c. A sale of containers intended for one-time use only,
341-and the labels thereof, when containers are sold without
342-contents to persons who sell or furnish containers along with
343-the contents placed therein for sale by persons.
344-d. A sale of pallets intended for one-time use only
345-when pallets are sold without contents to persons who sell or
346-furnish pallets along with the contents placed thereon for
347-sale by persons.
348-e. A sale to a manufacturer or compounder, of crowns,
349-caps, and tops intended for one-time use employed and used
350-upon the containers in which a manufacturer or compounder
351-markets his products.
352-f. A sale of containers to persons engaged in selling
353-or otherwise supplying or furnishing baby chicks to growers
354-thereof where containers are used for the delivery of chicks
355-or a sale of containers for use in the delivery of eggs by the
356-producer thereof to the distributor or packer of eggs even
357-though containers used for delivery of baby chicks or eggs may
321+receipts" shall also mean and include the reasonable and fair
322+market value of any tangible personal property previously
323+purchased at wholesale which is withdrawn or used from the
324+business or stock and used or consumed in connection with a
325+business, and shall also mean and include the reasonable and
326+fair market value of any tangible personal property previously
327+purchased at wholesale which is withdrawn from the business or
328+stock and used or consumed by any person so withdrawing the
329+same, except property which has been previously withdrawn from
330+business or stock and so used or consumed and with respect to
331+which property the tax has been paid because of previous
332+withdrawal, use, or consumption, except property which enters
333+into and becomes an ingredient or component part of tangible
334+personal property or products manufactured or compounded for
335+sale as provided in subdivision (9) and not for the personal
336+and private use or consumption of any person so withdrawing,
337+using, or consuming the same, and except refinery, residue, or
338+fuel gas, whether in a liquid or gaseous state, that has been
339+generated by, or is otherwise a by-product of, a
340+petroleum-refining process, which gas is then utilized in the
341+process to generate heat or is otherwise utilized in the
342+distillation or refining of petroleum products.
343+(9) WHOLESALE SALE or SALE AT WHOLESALE. Any one of the
344+following:
345+a. A sale of tangible personal property by wholesalers
346+to licensed retail merchants, jobbers, dealers, or other
347+wholesalers for resale and does not include a sale by
348+wholesalers to users or consumers, not for resale.
358349 141
359350 142
360351 143
361352 144
362353 145
363354 146
364355 147
365356 148
366357 149
367358 150
368359 151
369360 152
370361 153
371362 154
372363 155
373364 156
374365 157
375366 158
376367 159
377368 160
378369 161
379370 162
380371 163
381372 164
382373 165
383374 166
384375 167
385-168 HB479 EnrolledHB479 Enrolled
386-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
376+168 HB479 INTRODUCEDHB479 INTRODUCED
387377 Page 7
388-be recovered for reuse.
389-g. A sale of bagging and ties used in preparing cotton
390-for market.
391-h. A sale to meat packers, manufacturers, compounders,
392-or processors of meat products of all casings used in molding
393-or forming wieners and Vienna sausages even though casings may
394-be recovered for reuse.
395-i. A sale of commercial fish feed including
396-concentrates, supplements, and other feed ingredients when
397-substances are used as ingredients in mixing and preparing
398-feed for fish raised to be sold on a commercial basis.
399-j. A sale of bait used to capture or attempt to capture
400-fish or other seafood in the process of commercial fishing by
401-a holder of a commercial license issued pursuant to Chapter 12
402-of Title 9.
403-k. A sale of tangible personal property to any person
404-engaging in the business of leasing or renting tangible
405-personal property to others, if tangible personal property is
406-purchased for the purpose of leasing or renting it to others
407-under a transaction subject to the privilege or license tax
408-levied in Article 4 of Chapter 12 of this title against any
409-person engaging in the business of leasing or renting tangible
410-personal property to others.
411-l. A purchase or withdrawal of parts or materials from
412-stock by any person licensed under this division where parts
413-or materials are used in repairing or reconditioning the
414-tangible personal property of a licensed person, which
415-tangible personal property is a part of the stock of goods of
378+b. A sale of tangible personal property or products,
379+including iron ore, and including the furnished container and
380+label of the property or products, to a manufacturer or
381+compounder which enter into and become an ingredient or
382+component part of the tangible personal property or products
383+that the manufacturer or compounder manufactures or compounds
384+for sale, whether or not the tangible personal property or
385+product used in manufacturing or compounding a finished
386+product is used with the intent that it becomes a component of
387+the finished product; provided, however, that it is the intent
388+of this section that no sale of capital equipment, machinery,
389+tools, or product shall be included in the term "wholesale
390+sale." The term "capital equipment, machinery, tools, or
391+product" shall mean property that is subject to depreciation
392+allowances for Alabama income tax purposes.
393+c. A sale of containers intended for one-time use only,
394+and the labels thereof, when containers are sold without
395+contents to persons who sell or furnish containers along with
396+the contents placed therein for sale by persons.
397+d. A sale of pallets intended for one-time use only
398+when pallets are sold without contents to persons who sell or
399+furnish pallets along with the contents placed thereon for
400+sale by persons.
401+e. A sale to a manufacturer or compounder, of crowns,
402+caps, and tops intended for one-time use employed and used
403+upon the containers in which a manufacturer or compounder
404+markets his products.
405+f. A sale of containers to persons engaged in selling
416406 169
417407 170
418408 171
419409 172
420410 173
421411 174
422412 175
423413 176
424414 177
425415 178
426416 179
427417 180
428418 181
429419 182
430420 183
431421 184
432422 185
433423 186
434424 187
435425 188
436426 189
437427 190
438428 191
439429 192
440430 193
441431 194
442432 195
443-196 HB479 EnrolledHB479 Enrolled
444-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
433+196 HB479 INTRODUCEDHB479 INTRODUCED
445434 Page 8
446-a licensed person, offered for sale by him or her, and not for
447-use or consumption of a licensed person.
448-(10) SALE AT RETAIL or RETAIL SALE. All sales of
449-tangible personal property except those defined as wholesale
450-sales. The quantities of goods sold or prices at which sold
451-are immaterial in determining whether or not a sale is at
452-retail. Sales of building materials to contractors, builders,
453-or landowners for resale or use in the form of real estate are
454-retail sales in whatever quantity sold. Sales of building
455-materials, fixtures, or other equipment to a manufacturer or
456-builder of modular buildings for use in manufacturing,
457-building, or equipping a modular building ultimately becoming
458-a part of real estate situated in the State of Alabama are
459-retail sales, and the use, sale, or resale of building shall
460-not be subject to the tax. Sales of tangible personal property
461-to undertakers and morticians are retail sales and subject to
462-the tax at the time of purchase, but are not subject to the
463-tax on resale to the consumer. Sales of tangible personal
464-property or products to manufacturers, quarry operators, mine
465-operators, or compounders, which are used or consumed by them
466-in manufacturing, mining, quarrying, or compounding and do not
467-become an ingredient or component part of the tangible
468-personal property manufactured or compounded as provided in
469-subdivision (9) are retail sales. The term "sale at retail" or
470-"retail sale" shall also mean and include the withdrawal, use,
471-or consumption of any tangible personal property by any one
472-who purchases same at wholesale, except property that has been
473-previously withdrawn from the business or stock and so used or
435+or otherwise supplying or furnishing baby chicks to growers
436+thereof where containers are used for the delivery of chicks
437+or a sale of containers for use in the delivery of eggs by the
438+producer thereof to the distributor or packer of eggs even
439+though containers used for delivery of baby chicks or eggs may
440+be recovered for reuse.
441+g. A sale of bagging and ties used in preparing cotton
442+for market.
443+h. A sale to meat packers, manufacturers, compounders,
444+or processors of meat products of all casings used in molding
445+or forming wieners and Vienna sausages even though casings may
446+be recovered for reuse.
447+i. A sale of commercial fish feed including
448+concentrates, supplements, and other feed ingredients when
449+substances are used as ingredients in mixing and preparing
450+feed for fish raised to be sold on a commercial basis.
451+j. A sale of bait used to capture or attempt to capture
452+fish or other seafood in the process of commercial fishing by
453+a holder of a commercial license issued pursuant to Chapter 12
454+of Title 9.
455+k. A sale of tangible personal property to any person
456+engaging in the business of leasing or renting tangible
457+personal property to others, if tangible personal property is
458+purchased for the purpose of leasing or renting it to others
459+under a transaction subject to the privilege or license tax
460+levied in Article 4 of Chapter 12 of this title against any
461+person engaging in the business of leasing or renting tangible
462+personal property to others.
474463 197
475464 198
476465 199
477466 200
478467 201
479468 202
480469 203
481470 204
482471 205
483472 206
484473 207
485474 208
486475 209
487476 210
488477 211
489478 212
490479 213
491480 214
492481 215
493482 216
494483 217
495484 218
496485 219
497486 220
498487 221
499488 222
500489 223
501-224 HB479 EnrolledHB479 Enrolled
502-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
490+224 HB479 INTRODUCEDHB479 INTRODUCED
503491 Page 9
504-consumed and with respect to which property tax has been paid
505-because of previous withdrawal, use, or consumption, except
506-property that enters into and becomes an ingredient or
507-component part of tangible personal property or products
508-manufactured or compounded for sale as provided in subdivision
509-(9) and not for the personal and private use or consumption of
510-any person so withdrawing, using, or consuming the same; and
511-wholesale purchaser shall report and pay the taxes thereon. In
512-the case of the sale of equipment, accessories, fixtures, and
513-other similar tangible personal property used in connection
514-with the sale of commercial mobile services as defined in
515-subdivision (6), or in connection with satellite television
516-services, at a price below cost, the term "sale at retail" and
517-"retail sale" shall include those sales, and those sales shall
518-not also be taxable as a withdrawal, use, or consumption of
519-such tangible personal property.
520-(11) BUSINESS. All activities engaged in, or caused to
521-be engaged in, with the object of gain, profit, benefit, or
522-advantage, either direct or indirect, and not excepting
523-subactivities producing marketable commodities used or
524-consumed in the main business activity, each of which
525-subactivities shall be considered business engaged in, taxable
526-in the class in which it falls.
527-(12) AUTOMOTIVE VEHICLE. A power shovel, dragline,
528-crawler, crawler crane, ditcher, or any similar machine that
529-is self-propelled, in addition to self-propelled machines that
530-are used primarily as instruments of conveyance.
531-(13) PREPAID TELEPHONE CALLING CARD. A sale of a
492+l. A purchase or withdrawal of parts or materials from
493+stock by any person licensed under this division where parts
494+or materials are used in repairing or reconditioning the
495+tangible personal property of a licensed person, which
496+tangible personal property is a part of the stock of goods of
497+a licensed person, offered for sale by him or her, and not for
498+use or consumption of a licensed person.
499+(10) SALE AT RETAIL or RETAIL SALE. All sales of
500+tangible personal property except those defined as wholesale
501+sales. The quantities of goods sold or prices at which sold
502+are immaterial in determining whether or not a sale is at
503+retail. Sales of building materials to contractors, builders,
504+or landowners for resale or use in the form of real estate are
505+retail sales in whatever quantity sold. Sales of building
506+materials, fixtures, or other equipment to a manufacturer or
507+builder of modular buildings for use in manufacturing,
508+building, or equipping a modular building ultimately becoming
509+a part of real estate situated in the State of Alabama are
510+retail sales, and the use, sale, or resale of building shall
511+not be subject to the tax. Sales of tangible personal property
512+to undertakers and morticians are retail sales and subject to
513+the tax at the time of purchase, but are not subject to the
514+tax on resale to the consumer. Sales of tangible personal
515+property or products to manufacturers, quarry operators, mine
516+operators, or compounders, which are used or consumed by them
517+in manufacturing, mining, quarrying, or compounding and do not
518+become an ingredient or component part of the tangible
519+personal property manufactured or compounded as provided in
532520 225
533521 226
534522 227
535523 228
536524 229
537525 230
538526 231
539527 232
540528 233
541529 234
542530 235
543531 236
544532 237
545533 238
546534 239
547535 240
548536 241
549537 242
550538 243
551539 244
552540 245
553541 246
554542 247
555543 248
556544 249
557545 250
558546 251
559-252 HB479 EnrolledHB479 Enrolled
560-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
547+252 HB479 INTRODUCEDHB479 INTRODUCED
561548 Page 10
562-prepaid telephone calling card or a prepaid authorization
563-number, or both, shall be deemed the sale of tangible personal
564-property subject to the tax imposed on the sale of tangible
565-personal property pursuant to this chapter. For purposes of
566-this subdivision, the sale of prepaid wireless service that is
567-evidenced by a physical card constitutes the sale of a prepaid
568-telephone calling card, and the sale of prepaid wireless
569-service that is not evidenced by a physical card constitutes
570-the sale of a prepaid authorization number.
571-(14) PREPAID WIRELESS SERVICE. The right to use mobile
572-telecommunications service, which must be paid for in advance
573-and that is sold in predetermined units or dollars of which
574-the number declines with use in a known amount, and which may
575-include rights to use non-telecommunications services or to
576-download digital products or digital content. For purposes of
577-this subdivision, mobile telecommunications service has the
578-meaning ascribed by Section 40-21-120.
579-(15) CONSUMABLE VAPOR PRODUCT. Any nicotine liquid
580-solution or other material containing nicotine that is
581-depleted when used as a vapor product.
582-(16) VAPOR PRODUCTS. Any non-lighted, noncombustible
583-product that employs a mechanical heating element, battery, or
584-electronic circuit regardless of shape or size and that can be
585-used to produce vapor from nicotine in a solution. The term
586-includes any vapor cartridge or other container of nicotine in
587-a solution or other form that is intended to be used with or
588-in an electronic cigarette, electronic cigar, electronic
589-cigarillo, electronic pipe, or similar product or device. The
549+subdivision (9) are retail sales. The term "sale at retail" or
550+"retail sale" shall also mean and include the withdrawal, use,
551+or consumption of any tangible personal property by any one
552+who purchases same at wholesale, except property that has been
553+previously withdrawn from the business or stock and so used or
554+consumed and with respect to which property tax has been paid
555+because of previous withdrawal, use, or consumption, except
556+property that enters into and becomes an ingredient or
557+component part of tangible personal property or products
558+manufactured or compounded for sale as provided in subdivision
559+(9) and not for the personal and private use or consumption of
560+any person so withdrawing, using, or consuming the same; and
561+wholesale purchaser shall report and pay the taxes thereon. In
562+the case of the sale of equipment, accessories, fixtures, and
563+other similar tangible personal property used in connection
564+with the sale of commercial mobile services as defined in
565+subdivision (6), or in connection with satellite television
566+services, at a price below cost, the term "sale at retail" and
567+"retail sale" shall include those sales, and those sales shall
568+not also be taxable as a withdrawal, use, or consumption of
569+such tangible personal property.
570+(11) BUSINESS. All activities engaged in, or caused to
571+be engaged in, with the object of gain, profit, benefit, or
572+advantage, either direct or indirect, and not excepting
573+subactivities producing marketable commodities used or
574+consumed in the main business activity, each of which
575+subactivities shall be considered business engaged in, taxable
576+in the class in which it falls.
590577 253
591578 254
592579 255
593580 256
594581 257
595582 258
596583 259
597584 260
598585 261
599586 262
600587 263
601588 264
602589 265
603590 266
604591 267
605592 268
606593 269
607594 270
608595 271
609596 272
610597 273
611598 274
612599 275
613600 276
614601 277
615602 278
616603 279
617-280 HB479 EnrolledHB479 Enrolled
618-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
604+280 HB479 INTRODUCEDHB479 INTRODUCED
619605 Page 11
620-term does not include any product regulated by the United
621-States Food and Drug Administration under Chapter V of the
622-Federal Food, Drug, and Cosmetic Act.
623-(17) PRODUCER VALUE ADDED AGRICULTURAL PRODUCTS. Fruits
624-or other agricultural products that have undergone some degree
625-of further processing by the original producer of the
626-agricultural product, including, but not limited to, whole
627-cuts of meat, bound cut flowers, jams, jellies, or boiled or
628-roasted peanuts.
629-(18) COMMERCIAL FISHING. The activity of catching or
630-processing fish or other seafood regularly and exclusively as
631-a means of livelihood by a holder of a commercial license
632-issued pursuant to Chapter 12 of Title 9. The term includes
633-shellfish farmers, shrimpers, oysterers, lobsterers, and
634-crabbers.
635-(19) COMMERCIAL FISHING VESSEL. Any vessel whose
636-masters and owners are regularly and exclusively engaged in
637-commercial fishing as their means of livelihood.
638-(20) FOOD. Food as defined in 7 U.S.C. § 2011, et seq.,
639-for the purposes of the federal Supplemental Nutrition
640-Assistance Program regardless of where or by what means food
641-is sold. In the event that the federal Supplemental Nutrition
642-Assistance Program definition no longer exists, the
643-Legislature shall provide a new definition of "food" by
644-general law.
645-(b) The use within this state of tangible personal
646-property by the manufacturer thereof, as building materials in
647-the performance of a construction contract, for the purposes
606+(12) AUTOMOTIVE VEHICLE. A power shovel, dragline,
607+crawler, crawler crane, ditcher, or any similar machine that
608+is self-propelled, in addition to self-propelled machines that
609+are used primarily as instruments of conveyance.
610+(13) PREPAID TELEPHONE CALLING CARD. A sale of a
611+prepaid telephone calling card or a prepaid authorization
612+number, or both, shall be deemed the sale of tangible personal
613+property subject to the tax imposed on the sale of tangible
614+personal property pursuant to this chapter. For purposes of
615+this subdivision, the sale of prepaid wireless service that is
616+evidenced by a physical card constitutes the sale of a prepaid
617+telephone calling card, and the sale of prepaid wireless
618+service that is not evidenced by a physical card constitutes
619+the sale of a prepaid authorization number.
620+(14) PREPAID WIRELESS SERVICE. The right to use mobile
621+telecommunications service, which must be paid for in advance
622+and that is sold in predetermined units or dollars of which
623+the number declines with use in a known amount, and which may
624+include rights to use non-telecommunications services or to
625+download digital products or digital content. For purposes of
626+this subdivision, mobile telecommunications service has the
627+meaning ascribed by Section 40-21-120.
628+(15) CONSUMABLE VAPOR PRODUCT. Any nicotine liquid
629+solution or other material containing nicotine that is
630+depleted when used as a vapor product.
631+(16) VAPOR PRODUCTS. Any non-lighted, noncombustible
632+product that employs a mechanical heating element, battery, or
633+electronic circuit regardless of shape or size and that can be
648634 281
649635 282
650636 283
651637 284
652638 285
653639 286
654640 287
655641 288
656642 289
657643 290
658644 291
659645 292
660646 293
661647 294
662648 295
663649 296
664650 297
665651 298
666652 299
667653 300
668654 301
669655 302
670656 303
671657 304
672658 305
673659 306
674660 307
675-308 HB479 EnrolledHB479 Enrolled
676-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
661+308 HB479 INTRODUCEDHB479 INTRODUCED
677662 Page 12
678-of this division, shall be considered as a retail sale thereof
679-by the manufacturer, who shall also be construed as the
680-ultimate consumer of materials or property, and who shall be
681-required to report transaction and pay the sales tax thereon,
682-based upon the reasonable and fair market price thereof at the
683-time and place where same are used or consumed by the
684-manufacturer. Where the contractor is the manufacturer or
685-compounder of ready-mix concrete or asphalt plant mix used in
686-the performance of a contract, whether the ready-mix concrete
687-or asphalt plant mix is manufactured or compounded at the job
688-site or at a fixed or permanent plant location, the tax
689-applies only to the cost of the ingredients that become a
690-component part of the ready-mix concrete or the asphalt plant
691-mix. The provisions of this subsection shall not apply to any
692-tangible personal property that is specifically exempted from
693-the tax levied in this division.
694-(c) The sale of lumber by a lumber manufacturer to a
695-trucker for resale is a sale at wholesale as sales are defined
696-herein where the trucker is either a licensed dealer in lumber
697-or, if a resident of Alabama, has registered with the
698-Department of Revenue, and has received therefrom a
699-certificate of registration or, if a nonresident of this state
700-purchasing lumber for resale outside the State of Alabama, has
701-furnished to the lumber manufacturer his or her name, address,
702-and the vehicle license number of the truck in which the
703-lumber is to be transported, which name, address, and vehicle
704-license number shall be shown on the sales invoice rendered by
705-the lumber manufacturer. The certificate provided for herein
663+used to produce vapor from nicotine in a solution. The term
664+includes any vapor cartridge or other container of nicotine in
665+a solution or other form that is intended to be used with or
666+in an electronic cigarette, electronic cigar, electronic
667+cigarillo, electronic pipe, or similar product or device. The
668+term does not include any product regulated by the United
669+States Food and Drug Administration under Chapter V of the
670+Federal Food, Drug, and Cosmetic Act.
671+(17) PRODUCER VALUE ADDED AGRICULTURAL PRODUCTS. Fruits
672+or other agricultural products that have undergone some degree
673+of further processing by the original producer of the
674+agricultural product, including, but not limited to, whole
675+cuts of meat, bound cut flowers, jams, jellies, or boiled or
676+roasted peanuts.
677+(18) COMMERCIAL FISHING. The activity of catching or
678+processing fish or other seafood regularly and exclusively as
679+a means of livelihood by a holder of a commercial license
680+issued pursuant to Chapter 12 of Title 9. The term includes
681+shellfish farmers, shrimpers, oysterers, lobsterers, and
682+crabbers.
683+(19) COMMERCIAL FISHING VESSEL. Any vessel whose
684+masters and owners are regularly and exclusively engaged in
685+commercial fishing as their means of livelihood.
686+(20) FOOD. Food as defined in 7 U.S.C. § 2011, et seq.,
687+for the purposes of the federal Supplemental Nutrition
688+Assistance Program regardless of where or by what means food
689+is sold. In the event that the federal Supplemental Nutrition
690+Assistance Program definition no longer exists, the
706691 309
707692 310
708693 311
709694 312
710695 313
711696 314
712697 315
713698 316
714699 317
715700 318
716701 319
717702 320
718703 321
719704 322
720705 323
721706 324
722707 325
723708 326
724709 327
725710 328
726711 329
727712 330
728713 331
729714 332
730715 333
731716 334
732717 335
733-336 HB479 EnrolledHB479 Enrolled
734-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
718+336 HB479 INTRODUCEDHB479 INTRODUCED
735719 Page 13
736-shall be valid for the calendar year of its issuance and may
737-be renewed from year to year on application to the Department
738-of Revenue on or before January 31 of each succeeding year;
739-provided, that if not renewed the certificate shall become
740-invalid for the purpose of this division on February 1.
741-(d) The dispensing or transferring of ophthalmic
742-materials, including lenses, frames, eyeglasses, contact
743-lenses, and other therapeutic optic devices, to a patient by a
744-licensed ophthalmologist, as a part of his or her professional
745-service, for purposes of this division, shall constitute a
746-sale, subject to the state sales tax. The licensed
747-ophthalmologist or licensed optometrist shall collect the
748-state sales tax. In no event shall the providing of
749-professional services in connection with the dispensing or
750-transferring of ophthalmic materials, including dispensing
751-fees or fitting fees, by a licensed ophthalmologist or
752-licensed optometrist be considered a sale subject to the state
753-sales tax. When the ophthalmic materials are purchased by a
754-consumer covered by a third party benefit plan, including
755-Medicare, the sales tax shall be applicable to the amount that
756-the ophthalmologist, optometrist, or optician is reimbursed by
757-the third party benefit plan plus the amount that the consumer
758-pays to the ophthalmologist, optometrist, or optician at the
759-time of the sale. All transfers of ophthalmic materials by
760-opticians or optometrists shall be considered retail sales
761-subject to the state sales tax. The term "supplier" shall
762-include but not be limited to optical laboratories, ophthalmic
763-material wholesalers, or anyone selling ophthalmic materials
720+Legislature shall provide a new definition of "food" by
721+general law.
722+(b) The use within this state of tangible personal
723+property by the manufacturer thereof, as building materials in
724+the performance of a construction contract, for the purposes
725+of this division, shall be considered as a retail sale thereof
726+by the manufacturer, who shall also be construed as the
727+ultimate consumer of materials or property, and who shall be
728+required to report transaction and pay the sales tax thereon,
729+based upon the reasonable and fair market price thereof at the
730+time and place where same are used or consumed by the
731+manufacturer. Where the contractor is the manufacturer or
732+compounder of ready-mix concrete or asphalt plant mix used in
733+the performance of a contract, whether the ready-mix concrete
734+or asphalt plant mix is manufactured or compounded at the job
735+site or at a fixed or permanent plant location, the tax
736+applies only to the cost of the ingredients that become a
737+component part of the ready-mix concrete or the asphalt plant
738+mix. The provisions of this subsection shall not apply to any
739+tangible personal property that is specifically exempted from
740+the tax levied in this division.
741+(c) The sale of lumber by a lumber manufacturer to a
742+trucker for resale is a sale at wholesale as sales are defined
743+herein where the trucker is either a licensed dealer in lumber
744+or, if a resident of Alabama, has registered with the
745+Department of Revenue, and has received therefrom a
746+certificate of registration or, if a nonresident of this state
747+purchasing lumber for resale outside the State of Alabama, has
764748 337
765749 338
766750 339
767751 340
768752 341
769753 342
770754 343
771755 344
772756 345
773757 346
774758 347
775759 348
776760 349
777761 350
778762 351
779763 352
780764 353
781765 354
782766 355
783767 356
784768 357
785769 358
786770 359
787771 360
788772 361
789773 362
790774 363
791-364 HB479 EnrolledHB479 Enrolled
792-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
775+364 HB479 INTRODUCEDHB479 INTRODUCED
793776 Page 14
794-to ophthalmologists.
795-(e) Notwithstanding the above, the withdrawal, use, or
796-consumption of a manufactured product by the manufacturer
797-thereof in quality control testing performed by employees or
798-independent contractors of the taxpayer, for purposes of this
799-division, shall not be deemed or considered to constitute a
800-transaction subject to sales tax, nor shall a gift by the
801-manufacturer of a manufactured product, withdrawn from the
802-manufacturer's inventory, to an entity listed in 26 U.S.C. §§
803-170(b) or (c), be considered a transaction subject to sales
804-tax.
805-(f) Notwithstanding the foregoing, a gift by a retailer
806-of a product or products where the aggregate retail value of
807-any single gift is equal to or less than ten thousand dollars
808-($10,000), withdrawn from the retailer's inventory, to an
809-entity listed in 26 U.S.C. §§ 170(b) or (c) shall not be
810-deemed or considered to constitute a transaction subject to
811-sales and use tax."
812-"§40-23-2
813-There is levied, in addition to all other taxes of
814-every kind now imposed by law, and shall be collected as
815-herein provided, a privilege or license tax against the person
816-on account of the business activities and in the amount to be
817-determined by the application of rates against gross sales, or
818-gross receipts, as the case may be, as follows:
819-(1) Upon every person, firm, or corporation, (including
820-the State of Alabama and its Alcoholic Beverage Control Board
821-in the sale of alcoholic beverages of all kinds, the
777+furnished to the lumber manufacturer his or her name, address,
778+and the vehicle license number of the truck in which the
779+lumber is to be transported, which name, address, and vehicle
780+license number shall be shown on the sales invoice rendered by
781+the lumber manufacturer. The certificate provided for herein
782+shall be valid for the calendar year of its issuance and may
783+be renewed from year to year on application to the Department
784+of Revenue on or before January 31 of each succeeding year;
785+provided, that if not renewed the certificate shall become
786+invalid for the purpose of this division on February 1.
787+(d) The dispensing or transferring of ophthalmic
788+materials, including lenses, frames, eyeglasses, contact
789+lenses, and other therapeutic optic devices, to a patient by a
790+licensed ophthalmologist, as a part of his or her professional
791+service, for purposes of this division, shall constitute a
792+sale, subject to the state sales tax. The licensed
793+ophthalmologist or licensed optometrist shall collect the
794+state sales tax. In no event shall the providing of
795+professional services in connection with the dispensing or
796+transferring of ophthalmic materials, including dispensing
797+fees or fitting fees, by a licensed ophthalmologist or
798+licensed optometrist be considered a sale subject to the state
799+sales tax. When the ophthalmic materials are purchased by a
800+consumer covered by a third party benefit plan, including
801+Medicare, the sales tax shall be applicable to the amount that
802+the ophthalmologist, optometrist, or optician is reimbursed by
803+the third party benefit plan plus the amount that the consumer
804+pays to the ophthalmologist, optometrist, or optician at the
822805 365
823806 366
824807 367
825808 368
826809 369
827810 370
828811 371
829812 372
830813 373
831814 374
832815 375
833816 376
834817 377
835818 378
836819 379
837820 380
838821 381
839822 382
840823 383
841824 384
842825 385
843826 386
844827 387
845828 388
846829 389
847830 390
848831 391
849-392 HB479 EnrolledHB479 Enrolled
850-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
832+392 HB479 INTRODUCEDHB479 INTRODUCED
851833 Page 15
852-University of Alabama, Auburn University, and all other
853-institutions of higher learning in the state, whether the
854-institutions be denominational, state, county, or municipal
855-institutions, any association or other agency or
856-instrumentality of the institutions) engaged or continuing
857-within this state, in the business of selling at retail any
858-tangible personal property whatsoever, including merchandise
859-and commodities of every kind and character, (not including,
860-however, bonds or other evidences of debts or stocks, nor
861-sales of material and supplies to any person for use in
862-fulfilling a contract for the painting, repair, or
863-reconditioning of vessels, barges, ships, other watercraft,
864-and commercial fishing vessels of over five tons load
865-displacement as registered with the U.S. Coast Guard and
866-licensed by the State of Alabama Department of Conservation
867-and Natural Resources) an amount equal to four percent of the
868-gross proceeds of sales of the business except where a
869-different amount is expressly provided herein. Provided,
870-however, that any person engaging or continuing in business as
871-a retailer and wholesaler or jobber shall pay the tax required
872-on the gross proceeds of retail sales of the business at the
873-rates specified, when his or her books are kept so as to show
874-separately the gross proceeds of sales of each business, and
875-when his or her books are not kept he or she shall pay the tax
876-as a retailer, on the gross sales of the business.
877-Where any used part including tires of an automotive
878-vehicle or a truck trailer, semitrailer, or house trailer is
879-taken in trade, or in a series of trades, as a credit or part
834+time of the sale. All transfers of ophthalmic materials by
835+opticians or optometrists shall be considered retail sales
836+subject to the state sales tax. The term "supplier" shall
837+include but not be limited to optical laboratories, ophthalmic
838+material wholesalers, or anyone selling ophthalmic materials
839+to ophthalmologists.
840+(e) Notwithstanding the above, the withdrawal, use, or
841+consumption of a manufactured product by the manufacturer
842+thereof in quality control testing performed by employees or
843+independent contractors of the taxpayer, for purposes of this
844+division, shall not be deemed or considered to constitute a
845+transaction subject to sales tax, nor shall a gift by the
846+manufacturer of a manufactured product, withdrawn from the
847+manufacturer's inventory, to an entity listed in 26 U.S.C. §§
848+170(b) or (c), be considered a transaction subject to sales
849+tax.
850+(f) Notwithstanding the foregoing, a gift by a retailer
851+of a product or products where the aggregate retail value of
852+any single gift is equal to or less than ten thousand dollars
853+($10,000), withdrawn from the retailer's inventory, to an
854+entity listed in 26 U.S.C. §§ 170(b) or (c) shall not be
855+deemed or considered to constitute a transaction subject to
856+sales and use tax."
857+"§40-23-2
858+There is levied, in addition to all other taxes of
859+every kind now imposed by law, and shall be collected as
860+herein provided, a privilege or license tax against the person
861+on account of the business activities and in the amount to be
880862 393
881863 394
882864 395
883865 396
884866 397
885867 398
886868 399
887869 400
888870 401
889871 402
890872 403
891873 404
892874 405
893875 406
894876 407
895877 408
896878 409
897879 410
898880 411
899881 412
900882 413
901883 414
902884 415
903885 416
904886 417
905887 418
906888 419
907-420 HB479 EnrolledHB479 Enrolled
908-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
889+420 HB479 INTRODUCEDHB479 INTRODUCED
909890 Page 16
910-payment on the sale of a new or rebuilt part or tire, the tax
911-levied herein shall be paid on the net difference, that is,
912-the price of the new or used part or tire sold less the credit
913-for the used part or tire taken in trade, provided, however,
914-this provision shall not be construed to include batteries.
915-(2) Upon every person, firm, or corporation engaged or
916-continuing within this state in the business of conducting or
917-operating places of amusement or entertainment, billiard and
918-pool rooms, bowling alleys, amusement devices, musical
919-devices, theaters, opera houses, moving picture shows,
920-vaudevilles, amusement parks, athletic contests, including
921-wrestling matches, prize fights, boxing and wrestling
922-exhibitions, football and baseball games, (including athletic
923-contests, conducted by or under the auspices of any
924-educational institution within this state, or any athletic
925-association thereof, or other association whether the
926-institution or association be a denominational, a state, or
927-county, or a municipal institution, or association or a state,
928-county, or city school, or other institution, association or
929-school) skating rinks, race tracks, golf courses, or any other
930-place at which any exhibition, display, amusement, or
931-entertainment is offered to the public or place or places
932-where an admission fee is charged, including public bathing
933-places and public dance halls of every kind and description
934-within the State of Alabama, an amount equal to four percent
935-of the gross receipts of any such business. Provided, however,
936-notwithstanding any language to the contrary in the prior
937-portion of this subdivision, the tax provisions so specified
891+determined by the application of rates against gross sales, or
892+gross receipts, as the case may be, as follows:
893+(1) Upon every person, firm, or corporation, (including
894+the State of Alabama and its Alcoholic Beverage Control Board
895+in the sale of alcoholic beverages of all kinds, the
896+University of Alabama, Auburn University, and all other
897+institutions of higher learning in the state, whether the
898+institutions be denominational, state, county, or municipal
899+institutions, any association or other agency or
900+instrumentality of the institutions) engaged or continuing
901+within this state, in the business of selling at retail any
902+tangible personal property whatsoever, including merchandise
903+and commodities of every kind and character, (not including,
904+however, bonds or other evidences of debts or stocks, nor
905+sales of material and supplies to any person for use in
906+fulfilling a contract for the painting, repair, or
907+reconditioning of vessels, barges, ships, other watercraft,
908+and commercial fishing vessels of over five tons load
909+displacement as registered with the U.S. Coast Guard and
910+licensed by the State of Alabama Department of Conservation
911+and Natural Resources) an amount equal to four percent of the
912+gross proceeds of sales of the business except where a
913+different amount is expressly provided herein. Provided,
914+however, that any person engaging or continuing in business as
915+a retailer and wholesaler or jobber shall pay the tax required
916+on the gross proceeds of retail sales of the business at the
917+rates specified, when his or her books are kept so as to show
918+separately the gross proceeds of sales of each business, and
938919 421
939920 422
940921 423
941922 424
942923 425
943924 426
944925 427
945926 428
946927 429
947928 430
948929 431
949930 432
950931 433
951932 434
952933 435
953934 436
954935 437
955936 438
956937 439
957938 440
958939 441
959940 442
960941 443
961942 444
962943 445
963944 446
964945 447
965-448 HB479 EnrolledHB479 Enrolled
966-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
946+448 HB479 INTRODUCEDHB479 INTRODUCED
967947 Page 17
968-shall not apply to any athletic event conducted by a public or
969-nonpublic primary or secondary school or any athletic event
970-conducted by or under the auspices of the Alabama High School
971-Athletic Association. The tax amount which would have been
972-collected pursuant to this subdivision shall continue to be
973-collected by the public or nonpublic primary or secondary
974-school, but shall be retained by the school that collected it
975-and shall be used by the school for school purposes.
976-(3) Upon every person, firm, or corporation engaged or
977-continuing within this state in the business of selling at
978-retail machines used in mining, quarrying, compounding,
979-processing, and manufacturing of tangible personal property an
980-amount equal to one and one-half percent of the gross proceeds
981-of the sale of the machines. The term "machine," as herein
982-used, shall include machinery which is used for mining,
983-quarrying, compounding, processing, or manufacturing tangible
984-personal property, and the parts of the machines, attachments,
985-and replacements therefor, which are made or manufactured for
986-use on or in the operation of the machines and which are
987-necessary to the operation of the machines and are customarily
988-so used.
989-(4) Upon every person, firm, or corporation engaged or
990-continuing within this state in the business of selling at
991-retail any automotive vehicle or truck trailer, semitrailer,
992-or house trailer, or mobile home set-up materials and supplies
993-including but not limited to steps, blocks, anchoring, cable
994-pipes, and any other materials pertaining thereto, an amount
995-equal to two percent of the gross proceeds of sale of the
948+when his or her books are not kept he or she shall pay the tax
949+as a retailer, on the gross sales of the business.
950+Where any used part including tires of an automotive
951+vehicle or a truck trailer, semitrailer, or house trailer is
952+taken in trade, or in a series of trades, as a credit or part
953+payment on the sale of a new or rebuilt part or tire, the tax
954+levied herein shall be paid on the net difference, that is,
955+the price of the new or used part or tire sold less the credit
956+for the used part or tire taken in trade, provided, however,
957+this provision shall not be construed to include batteries.
958+(2) Upon every person, firm, or corporation engaged or
959+continuing within this state in the business of conducting or
960+operating places of amusement or entertainment, billiard and
961+pool rooms, bowling alleys, amusement devices, musical
962+devices, theaters, opera houses, moving picture shows,
963+vaudevilles, amusement parks, athletic contests, including
964+wrestling matches, prize fights, boxing and wrestling
965+exhibitions, football and baseball games, (including athletic
966+contests, conducted by or under the auspices of any
967+educational institution within this state, or any athletic
968+association thereof, or other association whether the
969+institution or association be a denominational, a state, or
970+county, or a municipal institution, or association or a state,
971+county, or city school, or other institution, association or
972+school) skating rinks, race tracks, golf courses, or any other
973+place at which any exhibition, display, amusement, or
974+entertainment is offered to the public or place or places
975+where an admission fee is charged, including public bathing
996976 449
997977 450
998978 451
999979 452
1000980 453
1001981 454
1002982 455
1003983 456
1004984 457
1005985 458
1006986 459
1007987 460
1008988 461
1009989 462
1010990 463
1011991 464
1012992 465
1013993 466
1014994 467
1015995 468
1016996 469
1017997 470
1018998 471
1019999 472
10201000 473
10211001 474
10221002 475
1023-476 HB479 EnrolledHB479 Enrolled
1024-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1003+476 HB479 INTRODUCEDHB479 INTRODUCED
10251004 Page 18
1026-automotive vehicle or truck trailer, semitrailer, or house
1027-trailer, or mobile home set-up materials and supplies
1028-provided, however, where a person subject to the tax provided
1029-for in this subdivision withdraws from his or her stock in
1030-trade any automotive vehicle or truck trailer, semitrailer, or
1031-house trailer for use by him or her or by his or her employee
1032-or agent in the operation of the business, there shall be
1033-paid, in lieu of the tax levied herein, a fee of five dollars
1034-($5) per year or part thereof during which the automotive
1035-vehicle, truck trailer, semitrailer, or house trailer shall
1036-remain the property of the person. Each year or part thereof
1037-shall begin with the day or anniversary date, as the case may
1038-be, of such withdrawal and shall run for the 12 succeeding
1039-months or part thereof during which the automotive vehicle,
1040-truck trailer, semitrailer, or house trailer shall remain the
1041-property of the person.
1042-Where any used automotive vehicle or truck trailer,
1043-semitrailer, or house trailer is taken in trade or in a series
1044-of trades, as a credit or part payment on the sale of a new or
1045-used vehicle, the tax levied herein shall be paid on the net
1046-difference, that is, the price of the new or used vehicle sold
1047-less the credit for the used vehicle taken in trade.
1048-Sales of automobiles, motorcycles, trucks, truck
1049-trailers, travel trailers, campers, housecars, or semitrailers
1050-that will be registered or titled outside Alabama, that are
1051-exported or removed from Alabama within 72 hours by the
1052-purchaser or his or her agent for first use outside Alabama
1053-are subject to Alabama sales tax in an amount equal to only
1005+places and public dance halls of every kind and description
1006+within the State of Alabama, an amount equal to four percent
1007+of the gross receipts of any such business. Provided, however,
1008+notwithstanding any language to the contrary in the prior
1009+portion of this subdivision, the tax provisions so specified
1010+shall not apply to any athletic event conducted by a public or
1011+nonpublic primary or secondary school or any athletic event
1012+conducted by or under the auspices of the Alabama High School
1013+Athletic Association. The tax amount which would have been
1014+collected pursuant to this subdivision shall continue to be
1015+collected by the public or nonpublic primary or secondary
1016+school, but shall be retained by the school that collected it
1017+and shall be used by the school for school purposes.
1018+(3) Upon every person, firm, or corporation engaged or
1019+continuing within this state in the business of selling at
1020+retail machines used in mining, quarrying, compounding,
1021+processing, and manufacturing of tangible personal property an
1022+amount equal to one and one-half percent of the gross proceeds
1023+of the sale of the machines. The term "machine," as herein
1024+used, shall include machinery which is used for mining,
1025+quarrying, compounding, processing, or manufacturing tangible
1026+personal property, and the parts of the machines, attachments,
1027+and replacements therefor, which are made or manufactured for
1028+use on or in the operation of the machines and which are
1029+necessary to the operation of the machines and are customarily
1030+so used.
1031+(4) Upon every person, firm, or corporation engaged or
1032+continuing within this state in the business of selling at
10541033 477
10551034 478
10561035 479
10571036 480
10581037 481
10591038 482
10601039 483
10611040 484
10621041 485
10631042 486
10641043 487
10651044 488
10661045 489
10671046 490
10681047 491
10691048 492
10701049 493
10711050 494
10721051 495
10731052 496
10741053 497
10751054 498
10761055 499
10771056 500
10781057 501
10791058 502
10801059 503
1081-504 HB479 EnrolledHB479 Enrolled
1082-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1060+504 HB479 INTRODUCEDHB479 INTRODUCED
10831061 Page 19
1084-the state automotive sales tax rate, unless the sales tax laws
1085-of the state in which the purchaser will title or register the
1086-vehicle allows an Alabama resident to purchase a motor vehicle
1087-for first titling and registering in Alabama without the
1088-payment of tax to that state. However, in no case shall the
1089-amount of Alabama state sales tax due on a motor vehicle that
1090-will be registered or titled for use in another state exceed
1091-the amount of sales tax that would otherwise have been due in
1092-the state where the vehicle will be registered or titled for
1093-first use. In order to qualify as a travel trailer, camper, or
1094-housecar that will be registered or titled for use in another
1095-state, the purchaser must provide documentation to the seller
1096-that the purchaser is not a resident of Alabama as required by
1097-the Department of Revenue. No such proof is required in the
1098-sale of an automobile, motorcycle, truck, truck trailer, or
1099-semitrailer, excluding a travel trailer, camper, or housecar.
1100-The tax collected under this export provision shall be Alabama
1101-sales tax and shall exclude county and municipal sales tax. On
1102-January 1, 2016, and each January 1 thereafter, the Alabama
1103-Department of Revenue shall publish to the state's website a
1104-list of states that do not allow drive out provisions to
1105-Alabama residents. Should the list, required by this
1106-subsection and relied upon by the taxpayer, be incorrect, the
1107-taxpayer shall be relieved from the liability concerning the
1108-miscollection of the state automotive sales tax. Sales of all
1109-other vehicles such as mobile homes, motor bikes, all terrain
1110-vehicles, and boats do not qualify for the export exemption
1111-provision and are taxable unless the dealer can provide
1062+retail any automotive vehicle or truck trailer, semitrailer,
1063+or house trailer, or mobile home set-up materials and supplies
1064+including but not limited to steps, blocks, anchoring, cable
1065+pipes, and any other materials pertaining thereto, an amount
1066+equal to two percent of the gross proceeds of sale of the
1067+automotive vehicle or truck trailer, semitrailer, or house
1068+trailer, or mobile home set-up materials and supplies
1069+provided, however, where a person subject to the tax provided
1070+for in this subdivision withdraws from his or her stock in
1071+trade any automotive vehicle or truck trailer, semitrailer, or
1072+house trailer for use by him or her or by his or her employee
1073+or agent in the operation of the business, there shall be
1074+paid, in lieu of the tax levied herein, a fee of five dollars
1075+($5) per year or part thereof during which the automotive
1076+vehicle, truck trailer, semitrailer, or house trailer shall
1077+remain the property of the person. Each year or part thereof
1078+shall begin with the day or anniversary date, as the case may
1079+be, of such withdrawal and shall run for the 12 succeeding
1080+months or part thereof during which the automotive vehicle,
1081+truck trailer, semitrailer, or house trailer shall remain the
1082+property of the person.
1083+Where any used automotive vehicle or truck trailer,
1084+semitrailer, or house trailer is taken in trade or in a series
1085+of trades, as a credit or part payment on the sale of a new or
1086+used vehicle, the tax levied herein shall be paid on the net
1087+difference, that is, the price of the new or used vehicle sold
1088+less the credit for the used vehicle taken in trade.
1089+Sales of automobiles, motorcycles, trucks, truck
11121090 505
11131091 506
11141092 507
11151093 508
11161094 509
11171095 510
11181096 511
11191097 512
11201098 513
11211099 514
11221100 515
11231101 516
11241102 517
11251103 518
11261104 519
11271105 520
11281106 521
11291107 522
11301108 523
11311109 524
11321110 525
11331111 526
11341112 527
11351113 528
11361114 529
11371115 530
11381116 531
1139-532 HB479 EnrolledHB479 Enrolled
1140-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1117+532 HB479 INTRODUCEDHB479 INTRODUCED
11411118 Page 20
1142-factual evidence that the vehicle was delivered outside of
1143-Alabama or to a common carrier for transportation outside
1144-Alabama. In order for the sale to be exempt from Alabama tax,
1145-the information relative to the exempt sale shall be
1146-documented on forms approved by the Revenue Department.
1147-Of the total $.02 tax on each dollar of sale provided
1148-hereunder, 58 percent of the total tax generated by this
1149-subdivision (4) shall be deposited to the credit of the
1150-Education Trust Fund and 42 percent of the total tax generated
1151-by this subdivision (4) shall be deposited to the credit of
1152-the State General Fund.
1153-(5) Upon every person, firm, or corporation engaged or
1154-continuing within this state in the business of selling
1155-through coin-operated dispensing machines, food and food
1156-products for human consumption, not including beverages other
1157-than coffee, milk, milk products, and substitutes therefor,
1158-there is levied a tax equal to three percent of the cost of
1159-the food, food products, and beverages sold through the
1160-machines, which cost for the purpose of this subdivision shall
1161-be the gross proceeds of sales of the business.
1162-(6) Upon every person, firm, or corporation engaged or
1163-continuing within this state in the business of selling food
1164-as defined in Section 40-23-1, there is a tax levied equal to
1165-four percent of the gross proceeds of the sale of food. On
1166-September 1, 2023, the tax rate shall be reduced to three
1167-percent. On September 1, 2024, the tax rate shall be reduced
1168-to two percent, if the average of the estimated growth in the
1169-total net receipts from all revenue sources to the Education
1119+trailers, travel trailers, campers, housecars, or semitrailers
1120+that will be registered or titled outside Alabama, that are
1121+exported or removed from Alabama within 72 hours by the
1122+purchaser or his or her agent for first use outside Alabama
1123+are subject to Alabama sales tax in an amount equal to only
1124+the state automotive sales tax rate, unless the sales tax laws
1125+of the state in which the purchaser will title or register the
1126+vehicle allows an Alabama resident to purchase a motor vehicle
1127+for first titling and registering in Alabama without the
1128+payment of tax to that state. However, in no case shall the
1129+amount of Alabama state sales tax due on a motor vehicle that
1130+will be registered or titled for use in another state exceed
1131+the amount of sales tax that would otherwise have been due in
1132+the state where the vehicle will be registered or titled for
1133+first use. In order to qualify as a travel trailer, camper, or
1134+housecar that will be registered or titled for use in another
1135+state, the purchaser must provide documentation to the seller
1136+that the purchaser is not a resident of Alabama as required by
1137+the Department of Revenue. No such proof is required in the
1138+sale of an automobile, motorcycle, truck, truck trailer, or
1139+semitrailer, excluding a travel trailer, camper, or housecar.
1140+The tax collected under this export provision shall be Alabama
1141+sales tax and shall exclude county and municipal sales tax. On
1142+January 1, 2016, and each January 1 thereafter, the Alabama
1143+Department of Revenue shall publish to the state's website a
1144+list of states that do not allow drive out provisions to
1145+Alabama residents. Should the list, required by this
1146+subsection and relied upon by the taxpayer, be incorrect, the
11701147 533
11711148 534
11721149 535
11731150 536
11741151 537
11751152 538
11761153 539
11771154 540
11781155 541
11791156 542
11801157 543
11811158 544
11821159 545
11831160 546
11841161 547
11851162 548
11861163 549
11871164 550
11881165 551
11891166 552
11901167 553
11911168 554
11921169 555
11931170 556
11941171 557
11951172 558
11961173 559
1197-560 HB479 EnrolledHB479 Enrolled
1198-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1174+560 HB479 INTRODUCEDHB479 INTRODUCED
11991175 Page 21
1200-Trust Fund for the fiscal year ending September 30, 2025, as
1201-certified by the Director of Finance and the Legislative
1202-Fiscal Officer, respectively, pursuant to Section 260.02 of
1203-the Constitution of Alabama of 2022, is at least three and
1204-one-half percent higher than the previous fiscal year. If the
1205-growth requirement is not satisfied for the fiscal year ending
1206-September 30, 2025, the rate shall be reduced to two percent
1207-in a subsequent fiscal year when the growth requirement is
1208-satisfied."
1209-"§40-23-60
1210-For the purpose of this article, the following terms
1211-shall have the respective meanings ascribed to them in this
1212-section:
1213-(1) PERSON or COMPANY. Any individual, firm, company,
1214-partnership, association, corporation, receiver or trustee, or
1215-any other group or combination acting as a unit, and the
1216-plural as well as the singular number, unless the intention to
1217-give a more limited meaning is disclosed by the context.
1218-(2) DEPARTMENT. The Department of Revenue of the State
1219-of Alabama.
1220-(3) COMMISSIONER. The Commissioner of Revenue of the
1221-State of Alabama.
1222-(4) WHOLESALE SALE or SALE AT WHOLESALE. Any one of the
1223-following:
1224-a. A sale of tangible personal property by wholesaler
1225-to licensed retail merchants, jobbers, dealers or other
1226-wholesalers for resale and does not include a sale by
1227-wholesalers to users or consumers, not for resale.
1176+taxpayer shall be relieved from the liability concerning the
1177+miscollection of the state automotive sales tax. Sales of all
1178+other vehicles such as mobile homes, motor bikes, all terrain
1179+vehicles, and boats do not qualify for the export exemption
1180+provision and are taxable unless the dealer can provide
1181+factual evidence that the vehicle was delivered outside of
1182+Alabama or to a common carrier for transportation outside
1183+Alabama. In order for the sale to be exempt from Alabama tax,
1184+the information relative to the exempt sale shall be
1185+documented on forms approved by the Revenue Department.
1186+Of the total $.02 tax on each dollar of sale provided
1187+hereunder, 58 percent of the total tax generated by this
1188+subdivision (4) shall be deposited to the credit of the
1189+Education Trust Fund and 42 percent of the total tax generated
1190+by this subdivision (4) shall be deposited to the credit of
1191+the State General Fund.
1192+(5) Upon every person, firm, or corporation engaged or
1193+continuing within this state in the business of selling
1194+through coin-operated dispensing machines, food and food
1195+products for human consumption, not including beverages other
1196+than coffee, milk, milk products, and substitutes therefor,
1197+there is levied a tax equal to three percent of the cost of
1198+the food, food products, and beverages sold through the
1199+machines, which cost for the purpose of this subdivision shall
1200+be the gross proceeds of sales of the business.
1201+(6) Upon every person, firm, or corporation engaged or
1202+continuing within this state in the business of selling food
1203+as defined in Section 40-23-1, there is a tax levied equal to
12281204 561
12291205 562
12301206 563
12311207 564
12321208 565
12331209 566
12341210 567
12351211 568
12361212 569
12371213 570
12381214 571
12391215 572
12401216 573
12411217 574
12421218 575
12431219 576
12441220 577
12451221 578
12461222 579
12471223 580
12481224 581
12491225 582
12501226 583
12511227 584
12521228 585
12531229 586
12541230 587
1255-588 HB479 EnrolledHB479 Enrolled
1256-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1231+588 HB479 INTRODUCEDHB479 INTRODUCED
12571232 Page 22
1233+four percent. Beginning September 1, 2023, the tax rate shall
1234+be reduced to three and one-half percent. On November 1, 2024,
1235+and on November 1 of every year thereafter until the tax rate
1236+is two percent, the tax rate shall be reduced by one-half of
1237+one percent. Provided, however, the rate of tax shall only be
1238+reduced if the growth in total net receipts from all revenue
1239+sources to the Education Trust Fund in the immediately
1240+preceding fiscal year was at least two percent more than the
1241+prior fiscal year. "
1242+"§40-23-60
1243+For the purpose of this article, the following terms
1244+shall have the respective meanings ascribed to them in this
1245+section:
1246+(1) PERSON or COMPANY. Any individual, firm, company,
1247+partnership, association, corporation, receiver or trustee, or
1248+any other group or combination acting as a unit, and the
1249+plural as well as the singular number, unless the intention to
1250+give a more limited meaning is disclosed by the context.
1251+(2) DEPARTMENT. The Department of Revenue of the State
1252+of Alabama.
1253+(3) COMMISSIONER. The Commissioner of Revenue of the
1254+State of Alabama.
1255+(4) WHOLESALE SALE or SALE AT WHOLESALE. Any one of the
1256+following:
1257+a. A sale of tangible personal property by wholesaler
1258+to licensed retail merchants, jobbers, dealers or other
1259+wholesalers for resale and does not include a sale by
1260+wholesalers to users or consumers, not for resale.
1261+589
1262+590
1263+591
1264+592
1265+593
1266+594
1267+595
1268+596
1269+597
1270+598
1271+599
1272+600
1273+601
1274+602
1275+603
1276+604
1277+605
1278+606
1279+607
1280+608
1281+609
1282+610
1283+611
1284+612
1285+613
1286+614
1287+615
1288+616 HB479 INTRODUCEDHB479 INTRODUCED
1289+Page 23
12581290 b. A sale of tangible personal property or products,
12591291 including iron ore, and including the furnished container and
12601292 label of such property or products, to a manufacturer or
12611293 compounder which enter into and become an ingredient or
12621294 component part of the tangible personal property or products
12631295 which the manufacturer or compounder manufactures or compounds
12641296 for sale, whether or not such tangible personal property or
12651297 product used in manufacturing or compounding a finished
12661298 product is used with the intent that it become a component of
12671299 the finished product; provided, however, that it is the intent
12681300 of this section that no sale of capital equipment, machinery,
12691301 tools, or product shall be included in the term "wholesale
12701302 sale." The term "capital equipment, machinery, tools, or
12711303 product" shall mean property that is subject to depreciation
12721304 allowances for Alabama income tax purposes.
12731305 c. A sale of containers intended for one-time use only,
12741306 and the labels thereof, when the containers are sold without
12751307 contents to persons who sell or furnish the containers along
12761308 with the contents placed therein for sale by such persons.
12771309 d. A sale of pallets intended for one-time use only
12781310 when the pallets are sold without contents to persons who sell
12791311 or furnish the pallets along with the contents placed thereon
12801312 for sale by such persons.
12811313 e. A sale to a manufacturer or compounder of crowns,
12821314 caps, and tops intended for one-time use employed and used
12831315 upon the containers in which the manufacturer or compounder
12841316 markets the manufacturer's or compounder's products.
12851317 f. A sale of containers to persons engaged in selling
1286-589
1287-590
1288-591
1289-592
1290-593
1291-594
1292-595
1293-596
1294-597
1295-598
1296-599
1297-600
1298-601
1299-602
1300-603
1301-604
1302-605
1303-606
1304-607
1305-608
1306-609
1307-610
1308-611
1309-612
1310-613
1311-614
1312-615
1313-616 HB479 EnrolledHB479 Enrolled
1314-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1315-Page 23
1318+617
1319+618
1320+619
1321+620
1322+621
1323+622
1324+623
1325+624
1326+625
1327+626
1328+627
1329+628
1330+629
1331+630
1332+631
1333+632
1334+633
1335+634
1336+635
1337+636
1338+637
1339+638
1340+639
1341+640
1342+641
1343+642
1344+643
1345+644 HB479 INTRODUCEDHB479 INTRODUCED
1346+Page 24
13161347 or otherwise supplying or furnishing baby chicks to growers
13171348 thereof where the containers are used for the delivery of the
13181349 chicks or a sale of containers for use in the delivery of eggs
13191350 by the producer thereof to the distributor or packer of the
13201351 eggs even though the containers used for delivery of baby
13211352 chicks or eggs may be recovered for reuse.
13221353 g. A sale of bagging and ties used in preparing cotton
13231354 for market.
13241355 h. A sale of commercial fish feed including
13251356 concentrates, supplements, and other feed ingredients when
13261357 such substances are used as ingredients in mixing and
13271358 preparing feed for fish raised to be sold on a commercial
13281359 basis.
13291360 i. A sale of bait used to capture or attempt to capture
13301361 fish or other seafood in the process of commercial fishing, as
13311362 defined in Section 40-23-1, by a holder of a commercial
13321363 license issued pursuant to Chapter 12 of Title 9.
13331364 j. A sale of tangible personal property to any person
13341365 engaging in the business of leasing or renting such tangible
13351366 personal property to others, if the tangible personal property
13361367 is purchased for the purpose of leasing or renting it to
13371368 others under a transaction subject to the privilege or license
13381369 tax levied in Article 4 of Chapter 12 against any person
13391370 engaging in the business of leasing or renting tangible
13401371 personal property to others.
13411372 k. A purchase or withdrawal of parts or materials from
13421373 stock by any person licensed under this article where the
13431374 parts or materials are used in repairing or reconditioning the
1344-617
1345-618
1346-619
1347-620
1348-621
1349-622
1350-623
1351-624
1352-625
1353-626
1354-627
1355-628
1356-629
1357-630
1358-631
1359-632
1360-633
1361-634
1362-635
1363-636
1364-637
1365-638
1366-639
1367-640
1368-641
1369-642
1370-643
1371-644 HB479 EnrolledHB479 Enrolled
1372-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1373-Page 24
1375+645
1376+646
1377+647
1378+648
1379+649
1380+650
1381+651
1382+652
1383+653
1384+654
1385+655
1386+656
1387+657
1388+658
1389+659
1390+660
1391+661
1392+662
1393+663
1394+664
1395+665
1396+666
1397+667
1398+668
1399+669
1400+670
1401+671
1402+672 HB479 INTRODUCEDHB479 INTRODUCED
1403+Page 25
13741404 tangible personal property of the licensed person which
13751405 tangible personal property is a part of the stock of goods of
13761406 the licensed person, offered for sale by the licensed person
13771407 and not for use or consumption of the licensed person.
13781408 l. A sale to meat packers, manufacturers, compounders,
13791409 or processors of meat products of all casings used in moulding
13801410 or forming wieners and Vienna sausages, even though the
13811411 casings may be recovered for reuse.
13821412 (5) SALE AT RETAIL or RETAIL SALE. All sales of
13831413 tangible personal property except those above defined as
13841414 wholesale sales. The quantities of goods sold or prices at
13851415 which sold are immaterial in determining whether or not a sale
13861416 is at retail. Sales of building materials to contractors,
13871417 builders, or landowners for resale or use in the form of real
13881418 estate are retail sales in whatever quantity sold. Sales of
13891419 building materials, fixtures, or other equipment to a
13901420 manufacturer or builder of modular buildings for use in
13911421 manufacturing, building, or equipping a modular building
13921422 ultimately becoming a part of real estate situated in the
13931423 State of Alabama are retail sales, and the use, sale, or
13941424 resale of such building shall not be subject to the tax. Sales
13951425 of tangible personal property to undertakers and morticians
13961426 are retail sales and subject to the tax at the time of
13971427 purchase, but are not subject to the tax on resale to the
13981428 consumer. Sales of tangible personal property or products to
13991429 manufacturers, quarry operators, mine operators, or
14001430 compounders, which are used or consumed by them in
14011431 manufacturing, mining, quarrying, or compounding and do not
1402-645
1403-646
1404-647
1405-648
1406-649
1407-650
1408-651
1409-652
1410-653
1411-654
1412-655
1413-656
1414-657
1415-658
1416-659
1417-660
1418-661
1419-662
1420-663
1421-664
1422-665
1423-666
1424-667
1425-668
1426-669
1427-670
1428-671
1429-672 HB479 EnrolledHB479 Enrolled
1430-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1431-Page 25
1432+673
1433+674
1434+675
1435+676
1436+677
1437+678
1438+679
1439+680
1440+681
1441+682
1442+683
1443+684
1444+685
1445+686
1446+687
1447+688
1448+689
1449+690
1450+691
1451+692
1452+693
1453+694
1454+695
1455+696
1456+697
1457+698
1458+699
1459+700 HB479 INTRODUCEDHB479 INTRODUCED
1460+Page 26
14321461 become an ingredient or component part of the tangible
14331462 personal property manufactured or compounded as provided in
14341463 subdivision (4) are retail sales. The term "sale at retail" or
14351464 "retail sale" shall also mean and include the withdrawal, use,
14361465 or consumption of any tangible personal property by anyone who
14371466 purchases same at wholesale, except property that has been
14381467 previously withdrawn from the business or stock and so used or
14391468 consumed and with respect to which property the tax has been
14401469 paid because of such previous withdrawal, use, or consumption,
14411470 except property that enters into and becomes an ingredient or
14421471 component part of tangible personal property or products
14431472 manufactured or compounded for sale as provided in subdivision
14441473 (4); and not for the personal and private use or consumption
14451474 of any person so withdrawing, using, or consuming the same,
14461475 and such wholesale purchaser shall report and pay the taxes
14471476 thereon; and except refinery, residue, or fuel gas, whether in
14481477 a liquid or gaseous state, that has been generated by, or is
14491478 otherwise a by-product of, a petroleum-refining process, which
14501479 gas is then utilized in the process to generate heat or is
14511480 otherwise utilized in the distillation or refining of
14521481 petroleum products. The term "retail sale" or "sale at retail"
14531482 shall also mean and include the sale of tangible personal
14541483 property previously purchased at wholesale for the purpose of
14551484 leasing or renting under a transaction subject to the
14561485 privilege or license tax levied in Article 4 of Chapter 12,
14571486 regardless of whether the sale is to the person who
14581487 theretofore leased or rented the tangible personal property or
14591488 to some other person.
1460-673
1461-674
1462-675
1463-676
1464-677
1465-678
1466-679
1467-680
1468-681
1469-682
1470-683
1471-684
1472-685
1473-686
1474-687
1475-688
1476-689
1477-690
1478-691
1479-692
1480-693
1481-694
1482-695
1483-696
1484-697
1485-698
1486-699
1487-700 HB479 EnrolledHB479 Enrolled
1488-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1489-Page 26
1489+701
1490+702
1491+703
1492+704
1493+705
1494+706
1495+707
1496+708
1497+709
1498+710
1499+711
1500+712
1501+713
1502+714
1503+715
1504+716
1505+717
1506+718
1507+719
1508+720
1509+721
1510+722
1511+723
1512+724
1513+725
1514+726
1515+727
1516+728 HB479 INTRODUCEDHB479 INTRODUCED
1517+Page 27
14901518 (6) BUSINESS. All activities engaged in, or caused to
14911519 be engaged in, with the object of gain, profit, benefit, or
14921520 advantage, either direct or indirect, and not excepting
14931521 subactivities producing marketable commodities used or
14941522 consumed in the main business activity, each of which
14951523 subactivities shall be considered business engaged in, taxable
14961524 in the class in which it falls.
14971525 (7) STORAGE. Any keeping or retention in this state for
14981526 any purpose except sale in the regular course of business or
14991527 subsequent use solely outside this state of tangible personal
15001528 property purchased at retail.
15011529 (8) USE. The exercise of any right or power over
15021530 tangible personal property incident to the ownership of that
15031531 property, or by any transaction where possession is given,
15041532 except that it shall not include the sale of that property in
15051533 the regular course of business.
15061534 (9) PURCHASE. Acquired for a consideration, whether
15071535 such acquisition was effected by a transfer of title, or of
15081536 possession or of both, or a license to use or consume; whether
15091537 such transfer shall have been absolute or conditional, and by
15101538 whatsoever means the same shall have been effected; and
15111539 whether such consideration be a price or rental in money, or
15121540 by way of exchange or barter.
15131541 (10) SALES PRICE. The total amount for which tangible
15141542 personal property is sold, including any services, including
15151543 transportation, that are a part of the sale, valued in money,
15161544 whether paid in money or otherwise, and includes any amount
15171545 for which credit is given to the purchaser by the seller,
1518-701
1519-702
1520-703
1521-704
1522-705
1523-706
1524-707
1525-708
1526-709
1527-710
1528-711
1529-712
1530-713
1531-714
1532-715
1533-716
1534-717
1535-718
1536-719
1537-720
1538-721
1539-722
1540-723
1541-724
1542-725
1543-726
1544-727
1545-728 HB479 EnrolledHB479 Enrolled
1546-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1547-Page 27
1546+729
1547+730
1548+731
1549+732
1550+733
1551+734
1552+735
1553+736
1554+737
1555+738
1556+739
1557+740
1558+741
1559+742
1560+743
1561+744
1562+745
1563+746
1564+747
1565+748
1566+749
1567+750
1568+751
1569+752
1570+753
1571+754
1572+755
1573+756 HB479 INTRODUCEDHB479 INTRODUCED
1574+Page 28
15481575 without any deduction therefrom on account of the cost of the
15491576 property sold, the cost of the materials used, labor or
15501577 service cost, interest charged, losses, or any other expenses
15511578 whatsoever; provided, that cash discounts allowed and taken on
15521579 sales shall not be included and sales price shall not include
15531580 the amount charged for property returned by customers when the
15541581 entire amount charged therefor is refunded either in cash or
15551582 by credit.
15561583 (11) IN THIS STATE or IN THE STATE. Within the exterior
15571584 limits of the State of Alabama, and includes all territory
15581585 within such limits owned by or ceded to the United States of
15591586 America.
15601587 (12) AUTOMOTIVE VEHICLE. A power shovel, dragline,
15611588 crawler, crawler crane, ditcher or any similar machine which
15621589 is self-propelled, in addition to self-propelled machines
15631590 which are used primarily as instruments of conveyance.
15641591 (13) PREPAID TELEPHONE CALLING CARD. A sale of a
15651592 prepaid telephone calling card or a prepaid authorization
15661593 number, or both, shall be deemed the sale of tangible personal
15671594 property subject to the tax imposed pursuant to this chapter.
15681595 For purposes of this subdivision, the sale of prepaid wireless
15691596 service that is evidenced by a physical card constitutes the
15701597 sale of a prepaid telephone calling card, and the sale of
15711598 prepaid wireless service that is not evidenced by a physical
15721599 card constitutes the sale of a prepaid authorization number.
15731600 (14) PREPAID WIRELESS SERVICE. The right to use mobile
15741601 telecommunications service, which must be paid for in advance
15751602 and that is sold in predetermined units or dollars of which
1576-729
1577-730
1578-731
1579-732
1580-733
1581-734
1582-735
1583-736
1584-737
1585-738
1586-739
1587-740
1588-741
1589-742
1590-743
1591-744
1592-745
1593-746
1594-747
1595-748
1596-749
1597-750
1598-751
1599-752
1600-753
1601-754
1602-755
1603-756 HB479 EnrolledHB479 Enrolled
1604-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1605-Page 28
1603+757
1604+758
1605+759
1606+760
1607+761
1608+762
1609+763
1610+764
1611+765
1612+766
1613+767
1614+768
1615+769
1616+770
1617+771
1618+772
1619+773
1620+774
1621+775
1622+776
1623+777
1624+778
1625+779
1626+780
1627+781
1628+782
1629+783
1630+784 HB479 INTRODUCEDHB479 INTRODUCED
1631+Page 29
16061632 the number declines with use or the expiration of time in a
16071633 known amount, and which may include rights to use
16081634 non-telecommunications services or to download digital
16091635 products or digital content. For purposes of this subdivision,
16101636 mobile telecommunications service has the meaning ascribed by
16111637 Section 40-21-120.
16121638 (15) REMOTE USE TAX. Amounts collected from out of
16131639 state vendors who, on October 1, 2012, were or would have been
16141640 remote sellers as defined in Section 40-23-171; and amounts
16151641 remitted by consumers on the individual tax return.
16161642 (16) FOOD. Food as defined in 7 U.S.C. § 2011, et seq.,
16171643 for the purposes of the federal Supplemental Nutrition
16181644 Assistance Program regardless of where or by what means food
16191645 is sold. In the event that the federal Supplemental Nutrition
16201646 Assistance Program definition no longer exists, the
16211647 Legislature shall provide a new definition of "food" by
16221648 general law."
16231649 "§40-23-61
16241650 (a) An excise tax is hereby imposed on the storage, use
16251651 or other consumption in this state of tangible personal
16261652 property, not including, however, materials and supplies
16271653 bought for use in fulfilling a contract for the painting,
16281654 repairing or reconditioning of vessels, barges, ships, other
16291655 watercraft and commercial fishing vessels of over five tons
16301656 load displacement as registered with the U.S. Coast Guard and
16311657 licensed by the State of Alabama Department of Conservation
16321658 and Natural Resources, purchased at retail on or after October
16331659 1, 1965, for storage, use or other consumption in this state
1634-757
1635-758
1636-759
1637-760
1638-761
1639-762
1640-763
1641-764
1642-765
1643-766
1644-767
1645-768
1646-769
1647-770
1648-771
1649-772
1650-773
1651-774
1652-775
1653-776
1654-777
1655-778
1656-779
1657-780
1658-781
1659-782
1660-783
1661-784 HB479 EnrolledHB479 Enrolled
1662-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1663-Page 29
1660+785
1661+786
1662+787
1663+788
1664+789
1665+790
1666+791
1667+792
1668+793
1669+794
1670+795
1671+796
1672+797
1673+798
1674+799
1675+800
1676+801
1677+802
1678+803
1679+804
1680+805
1681+806
1682+807
1683+808
1684+809
1685+810
1686+811
1687+812 HB479 INTRODUCEDHB479 INTRODUCED
1688+Page 30
16641689 at the rate of four percent of the sales price of such
16651690 property or the amount of tax collected by the seller,
16661691 whichever is greater; provided, however, when the seller
16671692 follows the Department of Revenue's suggested use tax brackets
16681693 and his records prove that his following said brackets
16691694 resulted in a net undercollection of tax for the month, he may
16701695 report the tax due or tax collected, whichever is less, except
16711696 as provided in subsections (b) , and (c), and (d) of this
16721697 section.
16731698 (b) An excise tax is hereby imposed on the storage, use
16741699 or other consumption in this state of any machines used in
16751700 mining, quarrying, compounding, processing and manufacturing
16761701 of tangible personal property, purchased at retail on or after
16771702 October 1, 1965, at the rate of one and one-half percent of
16781703 the sales price of any such machine or the amount of tax
16791704 collected by the seller, whichever is greater; provided,
16801705 however, when the seller follows the Department of Revenue's
16811706 suggested use tax brackets and his records prove that his
16821707 following said brackets resulted in a net undercollection of
16831708 tax for the month, he may report the tax due or tax collected,
16841709 whichever is less; provided, that the term "machine," as
16851710 herein used, shall include machinery which is used for mining,
16861711 quarrying, compounding, processing, or manufacturing tangible
16871712 personal property, and the parts of such machines, attachments
16881713 and replacements therefor, which are made or manufactured for
16891714 use on or in the operation of such machines and which are
16901715 necessary to the operation of such machines and are
16911716 customarily so used.
1692-785
1693-786
1694-787
1695-788
1696-789
1697-790
1698-791
1699-792
1700-793
1701-794
1702-795
1703-796
1704-797
1705-798
1706-799
1707-800
1708-801
1709-802
1710-803
1711-804
1712-805
1713-806
1714-807
1715-808
1716-809
1717-810
1718-811
1719-812 HB479 EnrolledHB479 Enrolled
1720-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1721-Page 30
1717+813
1718+814
1719+815
1720+816
1721+817
1722+818
1723+819
1724+820
1725+821
1726+822
1727+823
1728+824
1729+825
1730+826
1731+827
1732+828
1733+829
1734+830
1735+831
1736+832
1737+833
1738+834
1739+835
1740+836
1741+837
1742+838
1743+839
1744+840 HB479 INTRODUCEDHB479 INTRODUCED
1745+Page 31
17221746 (c) An excise tax is hereby imposed on the storage, use
17231747 or other consumption in this state of any automotive vehicle
17241748 or truck trailer, semitrailer or house trailer, and mobile
17251749 home set-up materials and supplies including but not limited
17261750 to steps, blocks, anchoring, cable pipes and any other
17271751 materials pertaining thereto, purchased at retail on or after
17281752 October 1, 1965, for storage, use or other consumption in this
17291753 state at the rate of two percent of the sales price of such
17301754 automotive vehicle, truck trailer, semitrailer or house
17311755 trailer, and mobile home set-up materials and supplies as
17321756 specified above, or the amount of tax collected by the seller,
17331757 whichever is greater; provided, however, when the seller
17341758 follows the Department of Revenue's suggested use tax brackets
17351759 and his records prove that his following said brackets
17361760 resulted in a net undercollection of tax for the month, he may
17371761 report the tax due or tax collected, whichever is less. Where
17381762 any used automotive vehicle or truck trailer, semitrailer or
17391763 house trailer is taken in trade, or in a series of trades, as
17401764 a credit or part payment on the sale of a new or used vehicle,
17411765 the tax levied herein shall be paid on the net difference,
17421766 that is, the price of the new or used vehicle sold less the
17431767 credit for the used vehicle taken in trade.
17441768 Of the total $.02 tax on each dollar of sale provided
17451769 hereunder, 58 percent of the total tax generated by this
17461770 subsection shall be deposited to the credit of the Education
17471771 Trust Fund; and 42 percent of the total tax generated by this
17481772 subsection shall be deposited to the credit of the State
17491773 General Fund.
1750-813
1751-814
1752-815
1753-816
1754-817
1755-818
1756-819
1757-820
1758-821
1759-822
1760-823
1761-824
1762-825
1763-826
1764-827
1765-828
1766-829
1767-830
1768-831
1769-832
1770-833
1771-834
1772-835
1773-836
1774-837
1775-838
1776-839
1777-840 HB479 EnrolledHB479 Enrolled
1778-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1779-Page 31
1780-(d) An excise tax is hereby imposed on the storage,
1781-use, or other consumption in this state of food as defined in
1782-Section 40-23-60, at the rate of four percent of the sales
1783-price of such food. On September 1, 2023, the tax rate shall
1784-be reduced to three percent. On September 1, 2024, the tax
1785-rate shall be reduced to two percent, if the average of the
1786-estimated growth in the total net receipts from all revenue
1787-sources to the Education Trust Fund for the fiscal year ending
1788-September 30, 2025, as certified by the Director of Finance
1789-and the Legislative Fiscal Officer, respectively, pursuant to
1790-Section 260.02 of the Constitution of Alabama of 2022, is at
1791-least three and one-half percent higher than the previous
1792-fiscal year. If the growth requirement is not satisfied for
1793-the fiscal year ending September 30, 2025, the rate shall be
1794-reduced to two percent in a subsequent fiscal year when the
1795-growth requirement is satisfied.
1796-(d)(e) Every person storing, using or otherwise
1797-consuming in this state tangible personal property purchased
1798-at retail shall be liable for the tax imposed by this article,
1799-and the liability shall not be extinguished until the tax has
1800-been paid to this state; provided, that a receipt from a
1801-retailer maintaining a place of business in this state or a
1802-retailer authorized by the department, under such rules and
1803-regulations as it may prescribe, to collect the tax imposed
1804-hereby and who shall for the purpose of this article be
1805-regarded as a retailer maintaining a place of business in this
1806-state, given to the purchaser in accordance with the
1807-provisions of Section 40-23-67, shall be sufficient to relieve
18081774 841
18091775 842
18101776 843
18111777 844
18121778 845
18131779 846
18141780 847
18151781 848
18161782 849
18171783 850
18181784 851
18191785 852
18201786 853
18211787 854
18221788 855
18231789 856
18241790 857
18251791 858
18261792 859
18271793 860
18281794 861
18291795 862
18301796 863
18311797 864
18321798 865
18331799 866
18341800 867
1835-868 HB479 EnrolledHB479 Enrolled
1836-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1801+868 HB479 INTRODUCEDHB479 INTRODUCED
18371802 Page 32
1803+(d) An excise tax is hereby imposed on the storage,
1804+use, or other consumption in this state of food as defined in
1805+Section 40-23-60, at the rate of four percent of the sales
1806+price of such food. Beginning September 1, 2023, the tax rate
1807+shall be reduced to three and one-half percent. On November 1,
1808+2024, and on November 1 of every year thereafter until the tax
1809+rate is two percent, the tax rate shall be reduced by one-half
1810+of one percent. Provided, however, the rate of tax shall only
1811+be reduced if the growth in total net receipts from all
1812+revenue sources to the Education Trust Fund in the preceding
1813+fiscal year was at least two percent more than the prior
1814+fiscal year.
1815+(d)(e) Every person storing, using or otherwise
1816+consuming in this state tangible personal property purchased
1817+at retail shall be liable for the tax imposed by this article,
1818+and the liability shall not be extinguished until the tax has
1819+been paid to this state; provided, that a receipt from a
1820+retailer maintaining a place of business in this state or a
1821+retailer authorized by the department, under such rules and
1822+regulations as it may prescribe, to collect the tax imposed
1823+hereby and who shall for the purpose of this article be
1824+regarded as a retailer maintaining a place of business in this
1825+state, given to the purchaser in accordance with the
1826+provisions of Section 40-23-67, shall be sufficient to relieve
18381827 the purchaser from further liability for tax to which such
18391828 receipt may refer.
18401829 (e)(f) An excise tax is hereby imposed on the classes
18411830 of tangible personal property, and at the rates imposed on
1842-such classes, specified in subsections (a), (b) , and (c), and
1843-(d) of this section, on the storage, use, or other consumption
1844-in the performance of a contract in this state of any such
1845-tangible personal property, new or used, the tax to be
1846-measured by the sales price or the fair and reasonable market
1847-value of such tangible personal property when put into use in
1848-this state, whichever is less; provided, that the tax imposed
1849-by this subsection shall not apply where the taxes imposed by
1850-subsection (a), (b), or (c), or (d) of this section apply."
1851-Section 2. (a) On the effective date of this act, the
1852-definition of "food" in Sections 40-23-1 and 40-23-60, Code of
1853-Alabama 1975, shall apply to county and municipal sales and
1854-use taxes. For purposes of county and municipal sales and use
1855-taxes, the sales tax rate on food shall be established as the
1856-general or retail sales tax rate in effect in the county or
1857-municipality on the effective date of this act, unless
1858-otherwise provided by law. An act of the Legislature or an
1859-ordinance or resolution adopted by a county or municipal
1860-governing body levying a county or municipal sales and use tax
1861-inclusive of food passed or enacted on or before the effective
1862-date of this act shall remain operative, but no additional
1863-county or municipal sales and use taxes on food may be levied.
1864-(b) Any county or municipal governing body may, by
1865-resolution or ordinance, reduce the general or retail sales
18661831 869
18671832 870
18681833 871
18691834 872
18701835 873
18711836 874
18721837 875
18731838 876
18741839 877
18751840 878
18761841 879
18771842 880
18781843 881
18791844 882
18801845 883
18811846 884
18821847 885
18831848 886
18841849 887
18851850 888
18861851 889
18871852 890
18881853 891
18891854 892
18901855 893
18911856 894
18921857 895
1893-896 HB479 EnrolledHB479 Enrolled
1894-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1858+896 HB479 INTRODUCEDHB479 INTRODUCED
18951859 Page 33
1896-tax rate on food for local sales and use taxes by 25 percent
1897-in any year in which the growth in the applicable municipal or
1898-county general fund exceeds two percent over the prior year.
1899-Such ordinance or resolution must be adopted at least 60 days
1900-prior to becoming effective and will take effect on October 1
1901-following adoption.
1902-(c) A county or municipal governing body that reduces
1903-its general or retail sales tax rate on food for local sales
1904-and use taxes pursuant to this section may subsequently
1905-increase the rate on food not to exceed the rate in effect in
1906-the county or municipality on the effective date of this act,
1907-unless otherwise provided by law.
1908-Section 3.This act shall become effective immediately
1909-following its passage and approval by the Governor, or its
1910-otherwise becoming law.
1860+such classes, specified in subsections (a), (b) , and (c), and
1861+(d) of this section, on the storage, use, or other consumption
1862+in the performance of a contract in this state of any such
1863+tangible personal property, new or used, the tax to be
1864+measured by the sales price or the fair and reasonable market
1865+value of such tangible personal property when put into use in
1866+this state, whichever is less; provided, that the tax imposed
1867+by this subsection shall not apply where the taxes imposed by
1868+subsection (a), (b), or (c), or (d) of this section apply."
1869+Section 2. (a) On the effective date of this act, the
1870+definition of "food" in Sections 40-23-1 and 40-23-60, Code of
1871+Alabama 1975, shall apply to county and municipal sales and
1872+use taxes. For purposes of county and municipal sales and use
1873+taxes, the sales tax rate on food shall be established as the
1874+general or retail sales tax rate in effect in the county or
1875+municipality on the effective date of this act, unless
1876+otherwise provided by law. An act of the Legislature or an
1877+ordinance or resolution adopted by a county or municipal
1878+governing body levying a county or municipal sales and use tax
1879+inclusive of food passed or enacted on or before the effective
1880+date of this act shall remain operative, but no additional
1881+county or municipal sales and use taxes on food may be levied.
1882+(b) Any county or municipal governing body may, by
1883+resolution or ordinance, reduce the general or retail sales
1884+tax rate on food for local sales and use taxes. Such ordinance
1885+or resolution must be adopted at least 60 days prior to
1886+becoming effective.
1887+Section 3.This act shall become effective on September
19111888 897
19121889 898
19131890 899
19141891 900
19151892 901
19161893 902
19171894 903
19181895 904
19191896 905
19201897 906
19211898 907
19221899 908
19231900 909
19241901 910
1925-911 HB479 EnrolledHB479 Enrolled
1926-FRPPDD-1 05/31/2023 SS (F) SS 2023-2350 Sub for HB479
1927-Page 34
1928-________________________________________________
1929-Speaker of the House of Representatives
1930-________________________________________________
1931-President and Presiding Officer of the Senate
1932-House of Representatives
1933-I hereby certify that the within Act originated in and
1934-was passed by the House 25-May-23, as amended.
1935-John Treadwell
1936-Clerk
1937-Senate 01-Jun-23 Passed
1938-House 01-Jun-23 Concurred in
1939- Senate Amendment
1902+911
19401903 912
19411904 913
19421905 914
19431906 915
19441907 916
19451908 917
19461909 918
19471910 919
19481911 920
19491912 921
19501913 922
19511914 923
1952-924
1915+924 HB479 INTRODUCEDHB479 INTRODUCED
1916+Page 34
1917+1, 2023, following its passage and approval by the Governor,
1918+or its otherwise becoming law.
19531919 925
19541920 926
19551921 927
1956-928
1957-929
1958-930
1959-931
1960-932
1961-933
1962-934
1963-935
1964-936
1965-937
1966-938
1967-939
1968-940
1969-941