Alabama Senate Bill SB90

Alabama 2023 Regular Session

• Introduced: 3/21/23
• Refer: 3/21/23
• Report Pass: 4/26/23
• Engrossed: 5/2/23
• Refer: 5/2/23
• Report Pass: 5/10/23
• Enrolled: 6/6/23
• Passed: 6/6/23

Caption

Relating to sales and use tax; to add a new Section 40-23-4.5, Code of Alabama 1975, to exclude products under Chapter 2A of Title 20 from the producer value added sales and use tax exemption.

Impact

The implementation of SB90 would alter the existing financial landscape regarding sales and use tax in Alabama. By removing the exemption for identified products, the bill could lead to increased tax liabilities for producers and consumers of these goods, thereby potentially affecting pricing, production levels, and overall economic activity within the sector addressed by the bill. The amendment seeks to clarify which products are exempt, ensuring that tax collections align more closely with state revenue goals.

Summary

Senate Bill 90, also known as SB90, is a legislative proposal in Alabama aimed at amending sales and use tax regulations. Specifically, the bill seeks to introduce a new section to the Code of Alabama 1975 that would exclude certain products under Chapter 2A of Title 20 from the producer value added sales and use tax exemption. This indicates a targeted approach to revising tax exemptions and could have significant implications for the taxation of specific goods and services in the state.

Sentiment

The sentiment surrounding SB90 appears to be overwhelmingly positive, as evidenced by its passage through the legislative process without any recorded opposition during voting. This could suggest that lawmakers see the bill as a straightforward method of addressing tax issues, although it may not account for differing opinions among stakeholders affected by these changes. The unanimous approval reflects a collective recognition of the need for such legislative clarity.

Contention

Despite its passage, the bill's approach to tax exemption revision may provoke discussions among businesses and producers in Alabama. Stakeholders in affected industries might express concerns regarding the financial burden derived from the removal of exemptions, especially if these changes are perceived to impact competitiveness or operational viability. As SB90 impacts specific product categories, future dialogue could emerge regarding its long-term effects on producers and consumption patterns within the state.