AL
Alabama House Bill HB105

Alabama 2024 Regular Session

Alabama House Bill HB105 Compare Versions

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33 HB105
44 L3ZCWWW-1
55 By Representative Lee
66 RFD: Ways and Means General Fund
77 First Read: 06-Feb-24
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1212 5 L3ZCWWW-1 12/19/2023 JRF (F)JRF 2023-3588
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1414 First Read: 06-Feb-24
1515 SYNOPSIS:
1616 Under existing law, the state levies a transient
1717 occupancy tax on the furnishing of rooms, lodging, or
1818 accommodations to transients for consideration.
1919 This bill would exclude certain registered
2020 vehicles and vessels from this tax under certain
2121 conditions.
2222 Also under existing law, the state levies a tax
2323 for the lease or rental of certain vehicles. This bill
2424 would exclude certain vehicles and vessels from this
2525 tax under certain conditions.
2626 A BILL
2727 TO BE ENTITLED
2828 AN ACT
2929 Relating to the transient occupancy tax; to amend
3030 Section 40-26-1, Code of Alabama 1975, to exempt certain
3131 registered vehicles and vessels from the transient occupancy
3232 tax under certain conditions; relating to the rental or lease
3333 tax; to amend Section 40-12-223, Code of Alabama 1975, to
3434 exempt certain vehicles and vessels from the rental or lease
3535 tax under certain conditions.
3636 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
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6666 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
6767 Section 1. Sections 40-26-1 and 40-12-223, Code of
6868 Alabama 1975, are amended to read as follows:
6969 "§40-26-1
7070 (a) There is levied and imposed, in addition to all
7171 other taxes of every kind now imposed by law, a privilege or
7272 license tax upon every person, firm, or corporation engaging
7373 in the business of renting or furnishing any room or rooms,
7474 lodging, or accommodations to transients in any hotel, motel,
7575 inn, tourist camp, tourist cabin, marine slip, place or space
7676 for tent camping, place or space provided for a motor home,
7777 travel trailer, self-propelled camper or house car, truck
7878 camper, or similar recreational vehicle commonly known as a
7979 R.V., or any other place in which rooms, lodgings, or
8080 accommodations are regularly furnished to transients for a
8181 consideration, in any county which is located in the
8282 geographic region comprising the Alabama mountain lakes area,
8383 those being Blount, Cherokee, Colbert, Cullman, DeKalb,
8484 Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone,
8585 Madison, Marion, Marshall, Morgan, and Winston, in an amount
8686 to be determined by the application of the rate of five
8787 percent of the charge for such room, rooms, lodgings, or
8888 accommodations, including the charge for use or rental of
8989 personal property and services furnished in such room, and the
9090 rate of four percent of the charge in every other county.
9191 There is exempted from the tax levied under this chapter any
9292 rentals or services taxed under Division 1 of Article 1 of
9393 Chapter 23 of this title.
9494 (b) The tax shall not apply to rooms, lodgings, or
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124124 (b) The tax shall not apply to rooms, lodgings, or
125125 accommodations supplied: (i) For a period of 180 continuous
126126 days or more in any place; (ii) by camps, conference centers,
127127 or similar facilities operated by nonprofit organizations
128128 primarily for the benefit of, and in connection with,
129129 recreational or educational programs for children, students,
130130 or members or guests of other nonprofit organizations during
131131 any calendar year; or (iii) by privately operated camps,
132132 conference centers, or similar facilities that provide lodging
133133 and recreational or educational programs exclusively for the
134134 benefit of children, students, or members or guests of
135135 nonprofit organizations during any calendar year.
136136 (c) For purposes of subsection (b): "Children" means
137137 individuals under age 21; "student" is defined in accordance
138138 with 26 U.S.C. § 151(c)(4), as in effect from time to time or
139139 by any successor law; "nonprofit organization" is an
140140 organization exempt from federal income tax under 26 U.S.C. §
141141 501(c)(3), as in effect from time to time or any successor
142142 law; and "privately operated" refers to any camp, conference
143143 center, or similar facility other than those operated by a
144144 nonprofit organization as herein defined.
145145 (d) For transactions entered into on or after
146146 OctoberSeptember 1, 20192024, the tax shall not apply to any
147147 of the following which are supplied for a period of 60
148148 continuous days or more:
149149 (1) Marinemarine slips,.
150150 (2)Placesplaces or spaces for tent camping , or.
151151 (3)Placesplaces or spaces provided for motor homes,
152152 travel trailers, self-propelled campers or house cars, truck
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182182 travel trailers, self-propelled campers or house cars, truck
183183 campers, or similar recreational vehicles commonly known as
184184 R.V.s,.
185185 (4)Any vehicle or vessel required to be registered
186186 pursuant to Title 40 or Title 32, respectively, continuously
187187 occupying any slip, place, or space provided in subdivisions
188188 (1) through (3)which are supplied for a period of 90
189189 continuous days or more in any place .
190190 (e)(1) Charges made for the rental of a ballroom,
191191 dining room, club room, sample room, conference room, wedding
192192 chapel, or similar room or space that is not intended nor
193193 suitable for overnight sleeping purposes and that is not used
194194 for overnight sleeping purposes is not subject to the tax
195195 levied pursuant to this chapter if the charges for the rental
196196 are separately stated by the facility and the room or space is
197197 used exclusively as a room or space for a meeting, conference,
198198 seminar, club meeting, private party, or similar activity.
199199 (2) The exclusion provided in subdivision (1) applies
200200 solely to the transient occupancy tax levied under this
201201 chapter and does not apply to any other taxes, licenses, or
202202 fees except a separately stated rental charge for a meeting
203203 room or other space excluded pursuant to subdivision (1) is
204204 also excluded from the tax levied by Chapter 23 of Title 40."
205205 "§40-12-223
206206 There are exempted from the computation of the amount
207207 of the tax levied, assessed, or payable under this article all
208208 of the following:
209209 (1) The gross proceeds accruing from the leasing or
210210 rental of a film or films to a lessee who charges, or proposes
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240240 rental of a film or films to a lessee who charges, or proposes
241241 to charge, admission for viewing the film or films.
242242 (2) The gross proceeds accruing from any charge in
243243 respect to the use of docks or docking facilities furnished
244244 for boats or other craft operated on waterways.
245245 (3) The gross proceeds accruing from any charge made by
246246 a landlord to a tenant in respect of the leasing or furnishing
247247 of tangible personal property to be used on the premises of
248248 real property leased by the same landlord to the same tenant
249249 for use as a residence or dwelling place, including mobile
250250 homes.
251251 (4) The gross proceeds accruing from the leasing or
252252 rental of tangible personal property to a lessee who acquires
253253 possession of the property for the purpose of leasing or
254254 renting to another the same property under a leasing or rental
255255 transaction subject to this article.
256256 (5) The gross proceeds accruing from any charge made by
257257 a landlord to a tenant in respect to the leasing or furnishing
258258 of tangible personal property to be used on the premises of
259259 any room or rooms, lodging, or accommodations leased or rented
260260 to transients in any hotel, motel, inn, tourist camp, tourist
261261 cabin, or any other place in which rooms, lodgings, or
262262 accommodations are regularly furnished to transients for a
263263 consideration.
264264 (6) The gross proceeds accruing from the leasing or
265265 rental of tangible personal property which the state is
266266 prohibited from taxing under the Constitution or laws of the
267267 United States or under the constitution of the state.
268268 (7) The gross proceeds accruing from the leasing or
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298298 (7) The gross proceeds accruing from the leasing or
299299 rental of nuclear fuel assemblies together with the nuclear
300300 material contained therein and other nuclear material used or
301301 useful in the production of electricity and assemblies
302302 containing ionizing radiation sources together with the
303303 ionizing radiation sources contained therein used or useful in
304304 medical treatment or scientific research.
305305 (8) A transaction in which the lessor leases a truck or
306306 tractor-trailer or semitrailer for operation over the public
307307 roads and highways and such lessor furnishes a driver or
308308 drivers for each vehicle, and the transaction shall be deemed
309309 to constitute the rendition of service and not a "leasing or
310310 rental" within the meaning of this article.
311311 (9) The gross proceeds accruing from the leasing or
312312 rental of vehicles in interchange between regulated motor
313313 carriers on a per diem basis.
314314 (10) The gross proceeds accruing from the leasing or
315315 rental of all structures, devices, facilities, and
316316 identifiable components of any thereof acquired primarily for
317317 the control, reduction, or elimination of air or water
318318 pollution, and the gross proceeds accruing from the leasing or
319319 rental of all materials used or intended for use in structures
320320 built primarily for the control, reduction, or elimination of
321321 air and water pollution.
322322 (11) The gross proceeds derived by the lessor, which
323323 term includes a sublessor, from the leasing or rental of
324324 tangible personal property when the lessor and lessee, which
325325 term includes a sublessee, are wholly-owned subsidiary
326326 corporations of the same parent corporation or one is the
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356356 corporations of the same parent corporation or one is the
357357 wholly-owned subsidiary of the other; provided, that the
358358 appropriate sales or use tax, if any was due, has been paid on
359359 the item of personal property; and provided further, that in
360360 the event of any subsequent subleasing of the tangible
361361 personal property to any person other than any sister, parent,
362362 or subsidiary corporation, any privilege or license tax due
363363 and payable with respect to that subsequent subleasing under
364364 the provisions of this article shall be paid.
365365 (12) The gross proceeds accruing from a transaction
366366 which involves the leasing or rental of vessels or railroad
367367 equipment which are engaged in interstate or foreign commerce,
368368 or both.
369369 (13) The gross proceeds accruing from the leasing or
370370 rental of aircraft, replacement parts, components, systems,
371371 sundries, and supplies affixed or used on the aircraft and all
372372 ground support equipment and vehicles used by or for the
373373 aircraft to or by a certificated or licensed air carrier with
374374 a hub operation within this state, for use in conducting
375375 intrastate, interstate, or foreign commerce for transporting
376376 people or property by air. For the purpose of this
377377 subdivision, the words "hub operation within this state" shall
378378 be construed to have both of the following criteria:
379379 a. There originates from the location 15 or more flight
380380 departures and five or more different first-stop destinations
381381 five days per week for six or more months during the calendar
382382 year.
383383 b. Passengers, property, or both, are regularly
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414414 exchanged at the location between flights of the same or a
415415 different certificated or licensed air carrier.
416416 (14) The gross proceeds derived by the lessor, which
417417 term includes a sublessor, from the leasing of tangible
418418 personal property under all of the following conditions:
419419 a. Prior to being leased under the lease subject to
420420 this exemption, the leased tangible personal property shall
421421 have been owned, or considered to be owned for either Alabama
422422 or federal income tax purposes or both, or subject to
423423 acquisition pursuant to a binding contract, by the lessee or
424424 by a corporation, partnership, or other entity controlled by,
425425 or under common control with, the lessee.
426426 b. The leased tangible personal property, or the right
427427 to ownership thereof, shall have been acquired by the lessor
428428 from the lessee or a corporation, partnership, or other entity
429429 controlled by, or under common control with, that lessee and
430430 leased back to the lessee under a lease that is considered a
431431 lease and not a sale for either Alabama or federal income tax
432432 purposes, or both, and that has a term of not less than 15
433433 years, except that the lessor and the lessee may agree in the
434434 lease or any subsequent amendment thereof for the termination
435435 of the lease on any date through purchase of the leased
436436 tangible personal property by the lessee, which right to
437437 purchase the property shall be exercisable solely at the
438438 option of the lessee.
439439 c. The appropriate sales or use tax levied by the state
440440 shall have been paid with respect to the acquisition or use of
441441 the leased tangible personal property, or, alternatively, the
442442 acquisition or use of that property shall be exempt by law
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472472 acquisition or use of that property shall be exempt by law
473473 from such sales or use tax.
474474 d. The leased tangible personal property shall be
475475 installed in or about an industrial plant or other real
476476 property that was specially constructed or modified for the
477477 location and use of the tangible personal property and that is
478478 owned, or considered to be owned, for either Alabama or
479479 federal income tax purposes or both, by a corporation,
480480 partnership, or other entity controlled by, or under common
481481 control with, the lessee of such tangible personal property.
482482 e. The leased tangible property shall be used only by a
483483 lessee engaged in the iron and steel industry, and the
484484 exemption from the tax levied by this article shall apply only
485485 to the gross proceeds derived from leases that become binding
486486 contracts of the parties thereto within 180 calendar days
487487 following the date on which the act adding the exemption
488488 contained in this subsection (14) shall become effective.
489489 (15) The gross proceeds accruing from a motor vehicle
490490 lease transaction for a duration of at least 180 days with the
491491 federal government, or any state, county, or municipal entity
492492 within the state, including a public school board or an
493493 individual public school, or any entity eligible for a sales
494494 tax exemption under federal law or Section 40-23-5.
495495 (16) The gross proceeds accruing from the leasing or
496496 rental of a vehicle or vessel exempt from taxation pursuant to
497497 of Section 40-26-1(d). "
498498 Section 2. This act shall become effective on September
499499 1, 2024.
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