AL
Alabama House Bill HB269

Alabama 2024 Regular Session

Alabama House Bill HB269 Compare Versions

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1+HB269INTRODUCED
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33 HB269
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4+M3FGWHW-1
55 By Representatives Colvin, Woods
66 RFD: Ways and Means Education
77 First Read: 29-Feb-24
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12-5 HB269 Engrossed
12+5 M3FGWHW-1 02/15/2024 RA (F)RA 2024-721
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15+SYNOPSIS:
16+Under existing law, the sale and lease of
17+aircraft and replacement parts by air carriers are
18+exempt from sales, use, and lease taxes under certain
19+conditions. This bill would remove the requirement that
20+the air carrier have a hub operation in this state.
21+Also under existing law, the gross receipts of
22+certain aircraft manufactured, sold, and delivered in
23+the state are exempt from sales and use taxes. This
24+bill would revise this exemption to provide that the
25+aircraft may be manufactured or delivered in this state
26+and to provide further for how aircraft are deemed
27+domiciled in this state.
1528 A BILL
1629 TO BE ENTITLED
1730 AN ACT
18-Relating to sales and use taxes and lease or rental
19-taxes; to amend Section 40-23-4, Code of Alabama 1975, to
20-revise the current sales and use tax exemption for certain
21-aircraft and parts; and to amend Section 40-12-223, Code of
22-Alabama 1975, to revise the current lease tax exemption for
23-certain aircraft and parts and to exempt the gross receipts
24-from the lease of certain aircraft not domiciled in this
25-state.
26-BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
27-Section 1. Section 40-23-4, Code of Alabama 1975, is
28-amended to read as follows:
29-"§40-23-4
30-(a) There are exempted from the provisions of this
31-division and from the computation of the amount of the tax
32-levied, assessed, or payable under this division the
33-following:
34-(1) The gross proceeds of the sales of lubricating oil
35-and gasoline as defined in Sections 40-17-30 and 40-17-170 and
36-the gross proceeds from those sales of lubricating oil
37-destined for out-of-state use which are transacted in a manner
38-whereby an out-of-state purchaser takes delivery of such oil
31+Relating to state sales and use taxes and lease or
32+rental taxes; to amend Section 40-23-4, Code of Alabama 1975,
33+to revise the current sales and use tax exemption for certain
34+aircraft and parts, to remove the requirements that air
35+carriers have a hub operation in this state; and to revise the
36+current exemption for certain aircraft to provide that the
37+aircraft can be manufactured or delivered in this state and to
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67+aircraft can be manufactured or delivered in this state and to
68+provide further for how aircraft are domiciled in this state;
69+and to amend Section 40-12-223, Code of Alabama 1975, to
70+revise the current lease tax exemption for certain aircraft
71+and parts, to remove the requirements that air carriers have a
72+hub operation in this state.
73+BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
74+Section 1. Section 40-23-4, Code of Alabama 1975, is
75+amended to read as follows:
76+"§40-23-4
77+(a) There are exempted from the provisions of this
78+division and from the computation of the amount of the tax
79+levied, assessed, or payable under this division the
80+following:
81+(1) The gross proceeds of the sales of lubricating oil
82+and gasoline as defined in Sections 40-17-30 and 40-17-170 and
83+the gross proceeds from those sales of lubricating oil
84+destined for out-of-state use which are transacted in a manner
6885 whereby an out-of-state purchaser takes delivery of such oil
6986 at a distributor's plant within this state and transports it
7087 out-of-state, which are otherwise taxed.
7188 (2) The gross proceeds of the sale, or sales, of
7289 fertilizer when used for agricultural purposes. The word
7390 "fertilizer" shall not be construed to include cottonseed
7491 meal, when not in combination with other materials.
7592 (3) The gross proceeds of the sale, or sales, of seeds
7693 for planting purposes and baby chicks and poults. Nothing
7794 herein shall be construed to exempt or exclude from the
7895 computation of the tax levied, assessed, or payable, the gross
79-proceeds of the sale or sales of plants, seedlings, nursery
80-stock, or floral products.
81-(4) The gross proceeds of sales of insecticides and
82-fungicides when used for agricultural purposes or when used by
83-persons properly permitted by the Department of Agriculture
84-and Industries or any applicable local or state governmental
85-authority for structural pest control work and feed for
86-livestock and poultry, but not including prepared food for
87-dogs and cats.
88-(5) The gross proceeds of sales of all livestock by
89-whomsoever sold, and also the gross proceeds of poultry and
90-other products of the farm, dairy, grove, or garden, when in
91-the original state of production or condition of preparation
92-for sale, when such sale or sales are made by the producer or
93-members of the producer's immediate family or for the producer
94-by those employed by the producer to assist in the production
95-thereof. Nothing herein shall be construed to exempt or
96-exclude from the measure or computation of the tax levied,
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125+computation of the tax levied, assessed, or payable, the gross
126+proceeds of the sale or sales of plants, seedlings, nursery
127+stock, or floral products.
128+(4) The gross proceeds of sales of insecticides and
129+fungicides when used for agricultural purposes or when used by
130+persons properly permitted by the Department of Agriculture
131+and Industries or any applicable local or state governmental
132+authority for structural pest control work and feed for
133+livestock and poultry, but not including prepared food for
134+dogs and cats.
135+(5) The gross proceeds of sales of all livestock by
136+whomsoever sold, and also the gross proceeds of poultry and
137+other products of the farm, dairy, grove, or garden, when in
138+the original state of production or condition of preparation
139+for sale, when such sale or sales are made by the producer or
140+members of the producer's immediate family or for the producer
141+by those employed by the producer to assist in the production
142+thereof. Nothing herein shall be construed to exempt or
126143 exclude from the measure or computation of the tax levied,
127144 assessed, or payable hereunder, the gross proceeds of sales of
128145 poultry or poultry products when not products of the farm.
129146 (6) Cottonseed meal exchanged for cottonseed at or by
130147 cotton gins.
131148 (7) The gross receipts from the business on which, or
132149 for engaging in which, a license or privilege tax is levied by
133150 or under Sections 40-21-50, 40-21-53, and 40-21-56 through
134151 40-21-60; provided, that nothing contained in this subdivision
135152 shall be construed to exempt or relieve the person or persons
136153 operating the business enumerated in these sections from the
137-payments of the tax levied by this division upon or measured
138-by the gross proceeds of sales of any tangible personal
139-property, except gas and water, the gross receipts from the
140-sale of which are the measure of the tax levied by Section
141-40-21-50, merchandise or other tangible commodities sold at
142-retail by the persons, unless the gross proceeds of sale
143-thereof are otherwise specifically exempted by this division.
144-(8) The gross proceeds of sales or gross receipts of or
145-by any person, firm, or corporation, from the sale of
146-transportation, gas, water, or electricity, of the kinds and
147-natures, the rates and charges for which, when sold by public
148-utilities, are customarily fixed and determined by the Public
149-Service Commission of Alabama or like regulatory bodies.
150-(9) The gross proceeds of the sale, or sales of wood
151-residue, coal, or coke to manufacturers, electric power
152-companies, and transportation companies for use or consumption
153-in the production of by-products, or the generation of heat or
154-power used in manufacturing tangible personal property for
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183+operating the business enumerated in these sections from the
184+payments of the tax levied by this division upon or measured
185+by the gross proceeds of sales of any tangible personal
186+property, except gas and water, the gross receipts from the
187+sale of which are the measure of the tax levied by Section
188+40-21-50, merchandise or other tangible commodities sold at
189+retail by the persons, unless the gross proceeds of sale
190+thereof are otherwise specifically exempted by this division.
191+(8) The gross proceeds of sales or gross receipts of or
192+by any person, firm, or corporation, from the sale of
193+transportation, gas, water, or electricity, of the kinds and
194+natures, the rates and charges for which, when sold by public
195+utilities, are customarily fixed and determined by the Public
196+Service Commission of Alabama or like regulatory bodies.
197+(9) The gross proceeds of the sale, or sales of wood
198+residue, coal, or coke to manufacturers, electric power
199+companies, and transportation companies for use or consumption
200+in the production of by-products, or the generation of heat or
184201 power used in manufacturing tangible personal property for
185202 sale, for the generation of electric power or energy for use
186203 in manufacturing tangible personal property for sale or for
187204 resale, or for the generation of motive power for
188205 transportation.
189206 (10) The gross proceeds from the sale or sales of fuel
190207 and supplies for use or consumption aboard ships, vessels,
191208 towing vessels, or barges, or drilling ships, rigs or barges,
192209 or seismic or geophysical vessels, or other watercraft (herein
193210 for purposes of this exemption being referred to as "vessels")
194211 engaged in foreign or international commerce or in interstate
195-commerce; provided, that nothing in this division shall be
196-construed to exempt or exclude from the measure of the tax
197-herein levied the gross proceeds of sale or sales of material
198-and supplies to any person for use in fulfilling a contract
199-for the painting, repair, or reconditioning of vessels,
200-barges, ships, other watercraft, and commercial fishing
201-vessels of over five tons load displacement as registered with
202-the U.S. Coast Guard and licensed by the State of Alabama
203-Department of Conservation and Natural Resources.
204-For purposes of this subdivision, it shall be presumed
205-that vessels engaged in the transportation of cargo between
206-ports in the State of Alabama and ports in foreign countries
207-or possessions or territories of the United States or between
208-ports in the State of Alabama and ports in other states are
209-engaged in foreign or international commerce or interstate
210-commerce, as the case may be. For the purposes of this
211-subdivision, the engaging in foreign or international commerce
212-or interstate commerce shall not require that the vessel
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241+engaged in foreign or international commerce or in interstate
242+commerce; provided, that nothing in this division shall be
243+construed to exempt or exclude from the measure of the tax
244+herein levied the gross proceeds of sale or sales of material
245+and supplies to any person for use in fulfilling a contract
246+for the painting, repair, or reconditioning of vessels,
247+barges, ships, other watercraft, and commercial fishing
248+vessels of over five tons load displacement as registered with
249+the U.S. Coast Guard and licensed by the State of Alabama
250+Department of Conservation and Natural Resources.
251+For purposes of this subdivision, it shall be presumed
252+that vessels engaged in the transportation of cargo between
253+ports in the State of Alabama and ports in foreign countries
254+or possessions or territories of the United States or between
255+ports in the State of Alabama and ports in other states are
256+engaged in foreign or international commerce or interstate
257+commerce, as the case may be. For the purposes of this
258+subdivision, the engaging in foreign or international commerce
242259 or interstate commerce shall not require that the vessel
243260 involved deliver cargo to or receive cargo from a port in the
244261 State of Alabama. For purposes of this subdivision, vessels
245262 carrying passengers for hire, and no cargo, between ports in
246263 the State of Alabama and ports in foreign countries or
247264 possessions or territories of the United States or between
248265 ports in the State of Alabama and ports in other states shall
249266 be engaged in foreign or international commerce or interstate
250267 commerce, as the case may be, if, and only if, both of the
251268 following conditions are met: (i) The vessel in question is a
252269 vessel of at least 100 gross tons; and (ii) the vessel in
253-question has an unexpired certificate of inspection issued by
254-the United States Coast Guard or by the proper authority of a
255-foreign country for a foreign vessel, which certificate is
256-recognized as acceptable under the laws of the United States.
257-Vessels that are engaged in foreign or international commerce
258-or interstate commerce shall be deemed for the purposes of
259-this subdivision to remain in such commerce while awaiting or
260-under repair in a port of the State of Alabama if the vessel
261-returns after such repairs are completed to engaging in
262-foreign or international commerce or interstate commerce. For
263-purposes of this subdivision, seismic or geophysical vessels
264-which are engaged either in seismic or geophysical tests or
265-evaluations exclusively in offshore federal waters or in
266-traveling to or from conducting such tests or evaluations
267-shall be deemed to be engaged in international or foreign
268-commerce. For purposes of this subdivision, proof that fuel
269-and supplies purchased are for use or consumption aboard
270-vessels engaged in foreign or international commerce or in
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299+vessel of at least 100 gross tons; and (ii) the vessel in
300+question has an unexpired certificate of inspection issued by
301+the United States Coast Guard or by the proper authority of a
302+foreign country for a foreign vessel, which certificate is
303+recognized as acceptable under the laws of the United States.
304+Vessels that are engaged in foreign or international commerce
305+or interstate commerce shall be deemed for the purposes of
306+this subdivision to remain in such commerce while awaiting or
307+under repair in a port of the State of Alabama if the vessel
308+returns after such repairs are completed to engaging in
309+foreign or international commerce or interstate commerce. For
310+purposes of this subdivision, seismic or geophysical vessels
311+which are engaged either in seismic or geophysical tests or
312+evaluations exclusively in offshore federal waters or in
313+traveling to or from conducting such tests or evaluations
314+shall be deemed to be engaged in international or foreign
315+commerce. For purposes of this subdivision, proof that fuel
316+and supplies purchased are for use or consumption aboard
300317 vessels engaged in foreign or international commerce or in
301318 interstate commerce may be accomplished by the merchant or
302319 seller securing the duly signed certificate of the vessel
303320 owner, operator, or captain or such person's respective agent,
304321 on a form prescribed by the department, that the fuel and
305322 supplies purchased are for use or consumption aboard vessels
306323 engaged in foreign or international commerce or in interstate
307324 commerce. Any person filing a false certificate shall be
308325 guilty of a misdemeanor and upon conviction shall be fined not
309326 less than twenty-five dollars ($25) nor more than five hundred
310327 dollars ($500) for each offense. Each false certificate filed
311-shall constitute a separate offense. Any person filing a false
312-certificate shall be liable to the department for all taxes
313-imposed by this division upon the merchant or seller, together
314-with any interest or penalties thereon, by reason of the sale
315-or sales of fuel and supplies applicable to the false
316-certificate. If a merchant or seller of fuel and supplies
317-secures the certificate herein mentioned, properly completed,
318-the merchant or seller shall not be liable for the taxes
319-imposed by this division, if the merchant or seller had no
320-knowledge that the certificate was false when it was filed
321-with the merchant or seller.
322-(11) The gross proceeds of sales of tangible personal
323-property to the State of Alabama, to the counties within the
324-state and to incorporated municipalities of the State of
325-Alabama.
326-(12) The gross proceeds of the sale or sales of
327-railroad cars, vessels, barges, and commercial fishing vessels
328-of over five tons load displacement as registered with the
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357+dollars ($500) for each offense. Each false certificate filed
358+shall constitute a separate offense. Any person filing a false
359+certificate shall be liable to the department for all taxes
360+imposed by this division upon the merchant or seller, together
361+with any interest or penalties thereon, by reason of the sale
362+or sales of fuel and supplies applicable to the false
363+certificate. If a merchant or seller of fuel and supplies
364+secures the certificate herein mentioned, properly completed,
365+the merchant or seller shall not be liable for the taxes
366+imposed by this division, if the merchant or seller had no
367+knowledge that the certificate was false when it was filed
368+with the merchant or seller.
369+(11) The gross proceeds of sales of tangible personal
370+property to the State of Alabama, to the counties within the
371+state and to incorporated municipalities of the State of
372+Alabama.
373+(12) The gross proceeds of the sale or sales of
374+railroad cars, vessels, barges, and commercial fishing vessels
358375 of over five tons load displacement as registered with the
359376 U.S. Coast Guard and licensed by the State of Alabama
360377 Department of Conservation and Natural Resources, when sold by
361378 the manufacturers or builders thereof.
362379 (13) The gross proceeds of the sale or sales of
363380 materials, equipment, and machinery that, at any time, enter
364381 into and become a component part of ships, vessels, towing
365382 vessels or barges, or drilling ships, rigs or barges, or
366383 seismic or geophysical vessels, other watercraft and
367384 commercial fishing vessels of over five tons load displacement
368385 as registered with the U.S. Coast Guard and licensed by the
369-State of Alabama Department of Conservation and Natural
370-Resources. Additionally, the gross proceeds from the sale or
371-sales of lifeboats, personal flotation devices, ring life
372-buoys, survival craft equipment, distress signals, EPIRB's,
373-fire extinguishers, injury placards, waste management plans
374-and logs, marine sanitation devices, navigation rulebooks,
375-navigation lights, sound signals, navigation day shapes, oil
376-placard cards, garbage placards, FCC SSL, stability
377-instructions, first aid equipment, compasses, anchor and radar
378-reflectors, general alarm systems, bilge pumps, piping, and
379-discharge and electronic position fixing devices which are
380-used on the aforementioned watercraft.
381-(14) The gross proceeds of the sale or sales of fuel
382-oil purchased as fuel for kiln use in manufacturing
383-establishments.
384-(15) The gross proceeds of the sale or sales of
385-tangible personal property to county and city school boards
386-within the State of Alabama, independent school boards within
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415+as registered with the U.S. Coast Guard and licensed by the
416+State of Alabama Department of Conservation and Natural
417+Resources. Additionally, the gross proceeds from the sale or
418+sales of lifeboats, personal flotation devices, ring life
419+buoys, survival craft equipment, distress signals, EPIRB's,
420+fire extinguishers, injury placards, waste management plans
421+and logs, marine sanitation devices, navigation rulebooks,
422+navigation lights, sound signals, navigation day shapes, oil
423+placard cards, garbage placards, FCC SSL, stability
424+instructions, first aid equipment, compasses, anchor and radar
425+reflectors, general alarm systems, bilge pumps, piping, and
426+discharge and electronic position fixing devices which are
427+used on the aforementioned watercraft.
428+(14) The gross proceeds of the sale or sales of fuel
429+oil purchased as fuel for kiln use in manufacturing
430+establishments.
431+(15) The gross proceeds of the sale or sales of
432+tangible personal property to county and city school boards
416433 within the State of Alabama, independent school boards within
417434 the State of Alabama, all educational institutions and
418435 agencies of the State of Alabama, the counties within the
419436 state, or any incorporated municipalities of the State of
420437 Alabama, and private educational institutions operating within
421438 the State of Alabama offering conventional and traditional
422439 courses of study, such as those offered by public schools,
423440 colleges, or universities within the State of Alabama; but not
424441 including nurseries, day care centers, and home schools.
425442 (16) The gross proceeds from the sale of all devices or
426-facilities, and all identifiable components thereof, or
427-materials for use therein, acquired primarily for the control,
428-reduction, or elimination of air or water pollution and the
429-gross proceeds from the sale of all identifiable components
430-of, or materials used or intended for use in, structures built
431-primarily for the control, reduction, or elimination of air
432-and water pollution.
433-(17) The gross proceeds of sales of tangible personal
434-property or the gross receipts of any business which the state
435-is prohibited from taxing under the Constitution or laws of
436-the United States or under the Constitution of this state.
437-(18) When dealers or distributors use parts taken from
438-stocks owned by them in making repairs without charge for the
439-parts to the owner of the property repaired pursuant to
440-warranty agreements entered into by manufacturers, such use
441-shall not constitute taxable sales to the manufacturers,
442-distributors, or to the dealers, under this division or under
443-any county sales tax law.
444-(19) The gross proceeds received from the sale or
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471+(16) The gross proceeds from the sale of all devices or
472+facilities, and all identifiable components thereof, or
473+materials for use therein, acquired primarily for the control,
474+reduction, or elimination of air or water pollution and the
475+gross proceeds from the sale of all identifiable components
476+of, or materials used or intended for use in, structures built
477+primarily for the control, reduction, or elimination of air
478+and water pollution.
479+(17) The gross proceeds of sales of tangible personal
480+property or the gross receipts of any business which the state
481+is prohibited from taxing under the Constitution or laws of
482+the United States or under the Constitution of this state.
483+(18) When dealers or distributors use parts taken from
484+stocks owned by them in making repairs without charge for the
485+parts to the owner of the property repaired pursuant to
486+warranty agreements entered into by manufacturers, such use
487+shall not constitute taxable sales to the manufacturers,
488+distributors, or to the dealers, under this division or under
489+any county sales tax law.
474490 (19) The gross proceeds received from the sale or
475491 furnishing of food, including potato chips, candy, fruit and
476492 similar items, soft drinks, tobacco products, and stationery
477493 and other similar or related articles by hospital canteens
478494 operated by Alabama state hospitals at Bryce Hospital and
479495 Partlow State School for Mental Deficients at Tuscaloosa,
480496 Alabama, and Searcy Hospital at Mt. Vernon, Alabama, for the
481497 benefit of the patients therein.
482498 (20) The gross proceeds of the sale, or sales, of
483499 wrapping paper and other wrapping materials when used in
484-preparing poultry or poultry products for delivery, shipment,
485-or sale by the producer, processor, packer, or seller of such
486-poultry or poultry products, including pallets used in
487-shipping poultry and egg products, paper or other materials
488-used for lining boxes or other containers in which poultry or
489-poultry products are packed together with any other materials
490-placed in such containers for the delivery, shipment, or sale
491-of poultry or poultry products.
492-(21) The gross proceeds of the sales of all
493-antibiotics, hormones and hormone preparations, drugs,
494-medicines or medications, vitamins, minerals or other
495-nutrients, and all other feed ingredients including
496-concentrates, supplements, and other feed ingredients when
497-such substances are used as ingredients in mixing and
498-preparing feed for fish raised to be sold on a commercial
499-basis, livestock, and poultry. Such exemption herein granted
500-shall be in addition to exemptions now provided by law for
501-feed for fish raised to be sold on a commercial basis,
502-livestock, and poultry, but not including prepared foods for
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529+wrapping paper and other wrapping materials when used in
530+preparing poultry or poultry products for delivery, shipment,
531+or sale by the producer, processor, packer, or seller of such
532+poultry or poultry products, including pallets used in
533+shipping poultry and egg products, paper or other materials
534+used for lining boxes or other containers in which poultry or
535+poultry products are packed together with any other materials
536+placed in such containers for the delivery, shipment, or sale
537+of poultry or poultry products.
538+(21) The gross proceeds of the sales of all
539+antibiotics, hormones and hormone preparations, drugs,
540+medicines or medications, vitamins, minerals or other
541+nutrients, and all other feed ingredients including
542+concentrates, supplements, and other feed ingredients when
543+such substances are used as ingredients in mixing and
544+preparing feed for fish raised to be sold on a commercial
545+basis, livestock, and poultry. Such exemption herein granted
546+shall be in addition to exemptions now provided by law for
547+feed for fish raised to be sold on a commercial basis,
532548 livestock, and poultry, but not including prepared foods for
533549 dogs or cats.
534550 (22) The gross proceeds of the sale, or sales, of
535551 seedlings, plants, shoots, and slips which are to be used for
536552 planting vegetable gardens or truck farms and other
537553 agricultural purposes. Nothing herein shall be construed to
538554 exempt, or exclude from the computation of the tax levied,
539555 assessed, or payable, the gross proceeds of the sale, or the
540556 use of plants, seedlings, shoots, slips, nursery stock, and
541557 floral products, except as hereinabove exempted.
542-(23) The gross proceeds of the sale, or sales, of
543-fabricated steel tube sections, when produced and fabricated
544-in this state by any person, firm, or corporation for any
545-vehicular tunnel for highway vehicular traffic, when sold by
546-the manufacturer or fabricator thereof, and also the gross
547-proceeds of the sale, or sales, of steel which enters into and
548-becomes a component part of such fabricated steel tube
549-sections of said tunnel.
550-(24) The gross proceeds from sales of admissions to any
551-theatrical production, symphonic or other orchestral concert,
552-ballet, or opera production when the concert or production is
553-presented by any society, association, guild, or workshop
554-group, organized within this state, whose members or some of
555-whose members regularly and actively participate in the
556-concerts or productions for the purposes of providing a
557-creative outlet for the cultural and educational interests of
558-its members, and of promoting such interests for the
559-betterment of the community by presenting the productions to
560-the general public for an admission charge. The employment of
558+252
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587+floral products, except as hereinabove exempted.
588+(23) The gross proceeds of the sale, or sales, of
589+fabricated steel tube sections, when produced and fabricated
590+in this state by any person, firm, or corporation for any
591+vehicular tunnel for highway vehicular traffic, when sold by
592+the manufacturer or fabricator thereof, and also the gross
593+proceeds of the sale, or sales, of steel which enters into and
594+becomes a component part of such fabricated steel tube
595+sections of said tunnel.
596+(24) The gross proceeds from sales of admissions to any
597+theatrical production, symphonic or other orchestral concert,
598+ballet, or opera production when the concert or production is
599+presented by any society, association, guild, or workshop
600+group, organized within this state, whose members or some of
601+whose members regularly and actively participate in the
602+concerts or productions for the purposes of providing a
603+creative outlet for the cultural and educational interests of
604+its members, and of promoting such interests for the
605+betterment of the community by presenting the productions to
590606 the general public for an admission charge. The employment of
591607 a paid director or conductor to assist in any such
592608 presentation described in this subdivision shall not be
593609 construed to prohibit the exemptions herein provided.
594610 (25) The gross proceeds of sales of "herbicides" for
595611 agricultural uses by whomsoever sold. The term herbicides, as
596612 used in this subdivision, means any substance or mixture of
597613 substances intended to prevent, destroy, repel, or retard the
598614 growth of weeds or plants. The term includes preemergence
599615 herbicides, postemergence herbicides, lay-by herbicides,
600-pasture herbicides, defoliant herbicides, and desiccant
601-herbicides.
602-(26) The Alabama Chapter of the Cystic Fibrosis
603-Research Foundation and the Jefferson Tuberculosis Sanatorium
604-and any of their departments or agencies, heretofore or
605-hereafter organized and existing in good faith in the State of
606-Alabama for purposes other than for pecuniary gain and not for
607-individual profit, shall be exempted from the computation of
608-the tax on the gross proceeds of all sales levied, assessed,
609-or payable.
610-(27) The gross proceeds from the sale or sales of fuel
611-for use or consumption aboard commercial fishing vessels are
612-exempt from the computation of all sales taxes levied,
613-assessed, or payable under this division or levied under any
614-county or municipal sales tax law.
615-(28) The gross proceeds from the sales of rope, fishing
616-nets, tools, or any substitute used directly in the process of
617-commercial fishing by a holder of a commercial license issued
618-pursuant to Chapter 12 of Title 9.
616+280
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645+herbicides, postemergence herbicides, lay-by herbicides,
646+pasture herbicides, defoliant herbicides, and desiccant
647+herbicides.
648+(26) The Alabama Chapter of the Cystic Fibrosis
649+Research Foundation and the Jefferson Tuberculosis Sanatorium
650+and any of their departments or agencies, heretofore or
651+hereafter organized and existing in good faith in the State of
652+Alabama for purposes other than for pecuniary gain and not for
653+individual profit, shall be exempted from the computation of
654+the tax on the gross proceeds of all sales levied, assessed,
655+or payable.
656+(27) The gross proceeds from the sale or sales of fuel
657+for use or consumption aboard commercial fishing vessels are
658+exempt from the computation of all sales taxes levied,
659+assessed, or payable under this division or levied under any
660+county or municipal sales tax law.
661+(28) The gross proceeds from the sales of rope, fishing
662+nets, tools, or any substitute used directly in the process of
663+commercial fishing by a holder of a commercial license issued
648664 pursuant to Chapter 12 of Title 9.
649665 (29) The gross proceeds of sales of sawdust, wood
650666 shavings, wood chips, and other like materials sold for use as
651667 chicken litter by poultry producers and poultry processors.
652668 (30) The gross proceeds of the sales of all
653669 antibiotics, hormones and hormone preparations, drugs,
654670 medicines, and other medications including serums and
655671 vaccines, vitamins, minerals, or other nutrients for use in
656672 the production and growing of fish, livestock, and poultry by
657673 whomsoever sold. The exemption herein granted shall be in
658-addition to the exemption provided by law for feed for fish,
659-livestock, and poultry, and in addition to the exemptions
660-provided by law for the above-enumerated substances and
661-products when mixed and used as ingredients in fish,
662-livestock, and poultry feed.
663-(31) The gross proceeds of the sale or sales of all
664-medicines prescribed by physicians for persons who are 65
665-years of age or older, and when the prescriptions are filled
666-by licensed pharmacists, shall be exempted under this division
667-or under any county or municipal sales tax law. The exemption
668-provided in this section shall not apply to any medicine
669-purchased in any manner other than as is herein provided.
670-For the purposes of this subdivision, proof of age may
671-be accomplished by filing with the dispensing pharmacist any
672-one or more of the following documents:
673-a. The name and claim number as shown on a Medicare
674-card issued by the United States Social Security
675-Administration.
676-b. A certificate executed by any adult person having
674+308
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703+whomsoever sold. The exemption herein granted shall be in
704+addition to the exemption provided by law for feed for fish,
705+livestock, and poultry, and in addition to the exemptions
706+provided by law for the above-enumerated substances and
707+products when mixed and used as ingredients in fish,
708+livestock, and poultry feed.
709+(31) The gross proceeds of the sale or sales of all
710+medicines prescribed by physicians for persons who are 65
711+years of age or older, and when the prescriptions are filled
712+by licensed pharmacists, shall be exempted under this division
713+or under any county or municipal sales tax law. The exemption
714+provided in this section shall not apply to any medicine
715+purchased in any manner other than as is herein provided.
716+For the purposes of this subdivision, proof of age may
717+be accomplished by filing with the dispensing pharmacist any
718+one or more of the following documents:
719+a. The name and claim number as shown on a Medicare
720+card issued by the United States Social Security
721+Administration.
706722 b. A certificate executed by any adult person having
707723 knowledge of the fact that the person for whom the medicine
708724 was prescribed is not less than 65 years of age.
709725 c. An affidavit executed by any adult person having
710726 knowledge of the fact that the person for whom the medicine
711727 was prescribed is not less than 65 years of age.
712728 For the purposes of this subdivision, any person filing
713729 a false proof of age shall be guilty of a misdemeanor and upon
714730 conviction thereof shall be punished by a fine of one hundred
715731 dollars ($100).
716-(32) There shall be exempted from the tax levied by
717-this division the gross receipts of sales of grass sod of all
718-kinds and character when in the original state of production
719-or condition of preparation for sale, when the sales are made
720-by the producer or members of the producer's family or for the
721-producer by those employed by the producer to assist in the
722-production thereof; provided, that nothing herein shall be
723-construed to exempt sales of sod by a person engaged in the
724-business of selling plants, seedlings, nursery stock, or
725-floral products.
726-(33) The gross receipts of sales of the following items
727-or materials that are necessary in the farm-to-market
728-production of tomatoes when such items or materials are used
729-by the producer or members of the producer's family or for the
730-producer by those employed by the producer to assist in the
731-production thereof: Twine for tying tomatoes, tomato stakes,
732-field boxes (wooden boxes used to take tomatoes from the
733-fields to shed), and tomato boxes used in shipments to
734-customers.
732+336
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761+dollars ($100).
762+(32) There shall be exempted from the tax levied by
763+this division the gross receipts of sales of grass sod of all
764+kinds and character when in the original state of production
765+or condition of preparation for sale, when the sales are made
766+by the producer or members of the producer's family or for the
767+producer by those employed by the producer to assist in the
768+production thereof; provided, that nothing herein shall be
769+construed to exempt sales of sod by a person engaged in the
770+business of selling plants, seedlings, nursery stock, or
771+floral products.
772+(33) The gross receipts of sales of the following items
773+or materials that are necessary in the farm-to-market
774+production of tomatoes when such items or materials are used
775+by the producer or members of the producer's family or for the
776+producer by those employed by the producer to assist in the
777+production thereof: Twine for tying tomatoes, tomato stakes,
778+field boxes (wooden boxes used to take tomatoes from the
779+fields to shed), and tomato boxes used in shipments to
764780 customers.
765781 (34) The gross proceeds from the sale of liquefied
766782 petroleum gas or natural gas sold to be used for agricultural
767783 purposes.
768784 (35) The gross receipts of sales from state nurseries
769785 of forest tree seedlings.
770786 (36) The gross receipts of sales of forest tree seed by
771787 the state.
772788 (37) The gross receipts of sales of Lespedeza bicolor
773789 and other species of perennial plant seed and seedlings sold
774-for wildlife and game food production purposes by the state.
775-(38) The gross receipts from the sale of any aircraft
776-manufactured, sold, and or delivered in this state if the
777-aircraft are is not permanently domiciled in Alabama and areis
778-removed to another state.
779-a. An aircraft shall be considered not permanently
780-domiciled in Alabama under this subdivision if either of the
781-following non-exclusive conditions is true:
782-1. The hanger, airstrip, or other housing unit in which
783-the aircraft is primarily based, departs from, and returns to
784-in its normal operation is located outside of Alabama; or
785-2. The purchaser’s headquarters is not in Alabama on
786-the date of purchase, and the aircraft will be operated either
787-by a: (1) certificated air carrier holding certificate of
788-public convenience under 49 U.S.C. §40102; or (2) a foreign
789-air carrier or intrastate air carrier, as defined by 49 U.S.C.
790-§40102.
791-b. The exemption provided in this subdivision shall not
792-apply to county or municipal sales or use taxes unless
790+364
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821818 Page 15
822-apply to county or municipal sales or use taxes unless
823-approved by resolution or ordinance adopted by the local
824-governing body.
825-c. The exemption provided by this subdivision shall
826-expire on September 30, 2029.
819+and other species of perennial plant seed and seedlings sold
820+for wildlife and game food production purposes by the state.
821+(38) The gross receipts from the sale of any aircraft
822+manufactured, sold, and or delivered in this state , if the
823+aircraft are is not permanently domiciled in Alabama and areis
824+removed to another state.
825+a. An aircraft shall be considered not permanently
826+domiciled in Alabama under this subdivision if either of the
827+following non-exclusive conditions is true:
828+1. The hanger, airstrip, or other housing unit which
829+the aircraft is intended to leave from and return to in the
830+regular course of use is located outside of Alabama, or
831+2. The buyer is an air carrier, foreign air carrier or
832+intrastate air carrier or operator, as defined by Section
833+40101 of Title 49 of the United States Code, 49 USC, Section
834+40101, and operating pursuant to Part 121 or Part 129, or
835+conducting scheduled or unscheduled services pursuant to Part
836+91 or Part 135; and the buyer’s headquarters is not in Alabama
837+on the date of purchase of the aircraft.
827838 (39) The gross proceeds from the sale or sales of all
828839 diesel fuel used for off-highway agricultural purposes.
829840 (40) The gross proceeds from sales of admissions to any
830841 sporting event that:
831842 a. Takes place in the State of Alabama on or after
832843 January 1, 1984, regardless of when such sales occur; and
833844 b. Is hosted by a not-for-profit corporation organized
834845 and existing under the laws of the State of Alabama; and
835846 c. Determines a national championship of a national
836847 organization, including, but not limited to, the Professional
837-Golfers Association of America, the Tournament Players
838-Association, the United States Golf Association, the United
839-States Tennis Association, and the National Collegiate
840-Athletic Association; and
841-d. Has not been held in the State of Alabama on more
842-than one prior occasion, provided, however, that for such
843-purpose the Professional Golfers Association Championship, the
844-United States Open Golf Championship, the United States
845-Amateur Golf Championship of the United States Golf
846-Association, and the United States Open Tennis Championship
847-shall each be treated as a separate event.
848-(41) The gross receipts from the sale of any aircraft
849-and replacement parts, components, systems, supplies, and
850-sundries affixed or used on the aircraft and ground support
848+392
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877+organization, including, but not limited to, the Professional
878+Golfers Association of America, the Tournament Players
879+Association, the United States Golf Association, the United
880+States Tennis Association, and the National Collegiate
881+Athletic Association; and
882+d. Has not been held in the State of Alabama on more
883+than one prior occasion, provided, however, that for such
884+purpose the Professional Golfers Association Championship, the
885+United States Open Golf Championship, the United States
886+Amateur Golf Championship of the United States Golf
887+Association, and the United States Open Tennis Championship
888+shall each be treated as a separate event.
889+(41) The gross receipts from the sale of any aircraft
890+and replacement parts, components, systems, supplies, and
880891 sundries affixed or used on the aircraft and ground support
881892 equipment and vehicles used by or for the aircraft to or by a
882893 certificated or licensed air carrier with a hub operation
883894 within this state , for use in conducting intrastate,
884895 interstate, or foreign commerce for transporting people or
885-property by air. The exemption provided in this subdivision
886-shall not apply to county or municipal sales or use taxes
887-unless approved by resolution or ordinance adopted by the
888-local governing body. The exemption provided by this
889-subdividion shall expire on September 30,2029. For the purpose
890-of this subdivision, the words "hub operation within this
891-state" shall be construed to have both of the following
892-criteria:
896+property by air. For the purpose of this subdivision, the
897+words "hub operation within this state" shall be construed to
898+have both of the following criteria:
893899 a. There originates from the location 15 or more flight
894900 departures and five or more different first-stop destinations
895901 five days per week for six or more months during the calendar
896902 year.
897903 b. Passengers or property or both are regularly
898904 exchanged at the location between flights of the same or a
899905 different certificated or licensed air carrier.
900-(42) The gross receipts from the sale of hot or cold
901-food and beverage products sold to or by a certificated or
902-licensed air carrier with a hub operation within this state,
903-for use in conducting intrastate, interstate, or foreign
904-commerce for transporting people or property by air. For the
905-purpose of this subdivision, the words "hub operation within
906-this state" shall be construed to have all of the following
907-criteria:
908-a. There originates from the location 15 or more flight
906+420
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935+different certificated or licensed air carrier.
936+(42) The gross receipts from the sale of hot or cold
937+food and beverage products sold to or by a certificated or
938+licensed air carrier with a hub operation within this state,
939+for use in conducting intrastate, interstate, or foreign
940+commerce for transporting people or property by air. For the
941+purpose of this subdivision, the words "hub operation within
942+this state" shall be construed to have all of the following
943+criteria:
938944 a. There originates from the location 15 or more flight
939945 departures and five or more different first-stop destinations
940946 five days per week for six or more months during the calendar
941947 year.
942948 b. Passengers or property or both are regularly
943949 exchanged at the location between flights of the same or a
944950 different certificated or licensed air carrier.
945951 (43) The gross receipts from the sale of any aviation
946952 jet fuel to a certificated or licensed air carrier purchased
947953 for use in scheduled all-cargo operations being conducted on
948954 international flights or in international commerce. For
949955 purposes of this subdivision, the following words or terms
950956 shall be defined and interpreted as follows:
951957 a. Air Carrier. Any person, firm, corporation, or
952958 entity undertaking by any means, directly or indirectly, to
953959 provide air transportation.
954960 b. All-Cargo Operations. Any flight conducted by an air
955961 carrier for compensation or hire other than a passenger
956962 carrying flight, except passengers as specified in 14 C.F.R. §
957963 121.583(a) or 14 C.F.R. § 135.85, as amended.
958-c. International Commerce. Any air carrier engaged in
959-all-cargo operations transporting goods for compensation or
960-hire on international flights.
961-d. International Flights. Any air carrier conducting
962-scheduled all-cargo operations between any point within the 50
963-states of the United States and the District of Columbia and
964-any point outside the 50 states of the United States and the
965-District of Columbia, including any interim stops within the
966-United States so long as the ultimate origin or destination of
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993+121.583(a) or 14 C.F.R. § 135.85, as amended.
994+c. International Commerce. Any air carrier engaged in
995+all-cargo operations transporting goods for compensation or
996+hire on international flights.
997+d. International Flights. Any air carrier conducting
998+scheduled all-cargo operations between any point within the 50
999+states of the United States and the District of Columbia and
1000+any point outside the 50 states of the United States and the
1001+District of Columbia, including any interim stops within the
9961002 United States so long as the ultimate origin or destination of
9971003 the aircraft is outside the United States and the District of
9981004 Columbia.
9991005 (44) The gross proceeds of the sale or sales of the
10001006 following:
10011007 a. Drill pipe, casing, tubing, and other pipe used for
10021008 the exploration for or production of oil, gas, sulphur, or
10031009 other minerals in offshore federal waters.
10041010 b. Tangible personal property exclusively used for the
10051011 exploration for or production of oil, gas, sulphur, or other
10061012 minerals in offshore federal waters.
10071013 c. Fuel and supplies for use or consumption aboard
10081014 boats, ships, aircraft, and towing vessels when used
10091015 exclusively in transporting persons or property between a
10101016 point in Alabama and a point or points in offshore federal
10111017 waters for the exploration for or production of oil, gas,
10121018 sulphur, or other minerals in offshore federal waters.
10131019 d. Drilling equipment that is used for the exploration
10141020 for or production of oil, gas, sulphur, or other minerals,
10151021 that is built for exclusive use outside this state and that
1016-is, on completion, removed forthwith from this state.
1017-The delivery of items exempted by this subdivision to
1018-the purchaser or lessee in this state does not disqualify the
1019-purchaser or lessee from the exemption if the property is
1020-removed from the state by any means, including by the use of
1021-the purchaser's or lessee's own facilities.
1022-The shipment to a place in this state of equipment
1023-exempted by this subdivision for further assembly or
1024-fabrication does not disqualify the purchaser or lessee from
1022+476
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10531050 Page 19
1051+that is built for exclusive use outside this state and that
1052+is, on completion, removed forthwith from this state.
1053+The delivery of items exempted by this subdivision to
1054+the purchaser or lessee in this state does not disqualify the
1055+purchaser or lessee from the exemption if the property is
1056+removed from the state by any means, including by the use of
1057+the purchaser's or lessee's own facilities.
1058+The shipment to a place in this state of equipment
1059+exempted by this subdivision for further assembly or
10541060 fabrication does not disqualify the purchaser or lessee from
10551061 the exemption if on completion of the further assembly or
10561062 fabrication the equipment is removed forthwith from this
10571063 state. This subdivision applies to a sale that may occur when
10581064 the equipment exempted is further assembled or fabricated if
10591065 on completion the equipment is removed forthwith from this
10601066 state.
10611067 (45) The gross receipts derived from all bingo games
10621068 and operations that are conducted in compliance with validly
10631069 enacted legislation authorizing the conduct of such games and
10641070 operations, and which comply with the distribution
10651071 requirements of the applicable local laws; provided that the
10661072 exemption from sales taxation granted by this subdivision
10671073 shall apply only to gross receipts taxable under subdivision
10681074 (2) of Section 40-23-2. It is further provided that this
10691075 exemption shall not apply to any gross receipts from the sale
10701076 of tangible personal property, such as concessions, novelties,
10711077 food, beverages, etc. The exemption provided for in this
10721078 section shall be limited to those games and operations by
10731079 organizations that have qualified for exemption under the
1074-provisions of 26 U.S.C. § 501 (c) (3), (4), (7), (8), (10), or
1075-(19), or which are defined in 26 U.S.C. § 501(d).
1076-(46) The gross receipts derived from the sale or sales
1077-of fruit or other agricultural products by the person or
1078-company, as defined in Section 40-23-1, that planted or
1079-cultivated and harvested the fruit or agricultural product,
1080-when the land is owned or leased by the seller.
1081-(47) The gross receipts derived from the sale or sales
1082-of all domestically mined or produced coal, coke, and coke
1080+504
10831081 505
10841082 506
10851083 507
10861084 508
10871085 509
10881086 510
10891087 511
10901088 512
10911089 513
10921090 514
10931091 515
10941092 516
10951093 517
10961094 518
10971095 519
10981096 520
10991097 521
11001098 522
11011099 523
11021100 524
11031101 525
11041102 526
11051103 527
11061104 528
11071105 529
11081106 530
1109-531
1110-532 HB269 Engrossed
1107+531 HB269 INTRODUCED
11111108 Page 20
1109+organizations that have qualified for exemption under the
1110+provisions of 26 U.S.C. § 501 (c) (3), (4), (7), (8), (10), or
1111+(19), or which are defined in 26 U.S.C. § 501(d).
1112+(46) The gross receipts derived from the sale or sales
1113+of fruit or other agricultural products by the person or
1114+company, as defined in Section 40-23-1, that planted or
1115+cultivated and harvested the fruit or agricultural product,
1116+when the land is owned or leased by the seller.
1117+(47) The gross receipts derived from the sale or sales
11121118 of all domestically mined or produced coal, coke, and coke
11131119 by-products used in cogeneration plants.
11141120 (48) The gross receipts from the sale or sales of
11151121 metal, other than gold or silver, when such metal is purchased
11161122 for the purpose of transferring such metal to an investment
11171123 trust in exchange for shares or other units, each of which are
11181124 both publicly traded and represent fractional undivided
11191125 beneficial interests in the trust's net assets, including
11201126 metal stored in warehouses located in this state, as well as
11211127 the gross proceeds from the sale or other transfer of such
11221128 metal to or from the investment trust in exchange for shares
11231129 or other units that are publicly traded and represent
11241130 fractional undivided beneficial interests in the trust's net
11251131 assets but not to the extent that metal is transferred to or
11261132 from the investment trust in exchange for consideration other
11271133 than such publicly traded shares or other units. For purposes
11281134 of this subdivision, the term "metals" includes, but is not
11291135 limited to, copper, aluminum, nickel, zinc, tin, lead, and
11301136 other similar metals typically used in commercial and
11311137 industrial applications.
1132-(49)a. For the period commencing on October 1, 2012,
1133-and ending May 30, 2027, the gross receipts from the sale of
1134-parts, components, and systems that become a part of a fixed
1135-or rotary wing military aircraft or certified transport
1136-category aircraft that undergoes conversion, reconfiguration,
1137-or general maintenance so long as the address of the aircraft
1138-for FAA registration is not in the state; provided, however,
1139-that this exemption shall not apply to a local sales tax
1140-unless previously exempted by local law or approved by
1138+532
11411139 533
11421140 534
11431141 535
11441142 536
11451143 537
11461144 538
11471145 539
11481146 540
11491147 541
11501148 542
11511149 543
11521150 544
11531151 545
11541152 546
11551153 547
11561154 548
11571155 549
11581156 550
11591157 551
11601158 552
11611159 553
11621160 554
11631161 555
11641162 556
11651163 557
11661164 558
1167-559
1168-560 HB269 Engrossed
1165+559 HB269 INTRODUCED
11691166 Page 21
1167+industrial applications.
1168+(49)a. For the period commencing on October 1, 2012,
1169+and ending May 30, 2027, the gross receipts from the sale of
1170+parts, components, and systems that become a part of a fixed
1171+or rotary wing military aircraft or certified transport
1172+category aircraft that undergoes conversion, reconfiguration,
1173+or general maintenance so long as the address of the aircraft
1174+for FAA registration is not in the state; provided, however,
1175+that this exemption shall not apply to a local sales tax
11701176 unless previously exempted by local law or approved by
11711177 resolution of the local governing body.
11721178 b. The exemption authorized by this subdivision shall
11731179 not be available for sales of parts, components, or systems
11741180 for new contracts or projects entered into after May 30, 2027,
11751181 unless the Legislature enacts legislation to continue or
11761182 reinstate the exemption for new contracts or projects after
11771183 that date. No action or inaction on the part of the
11781184 Legislature shall reduce, suspend, or disqualify sales of
11791185 parts, components, or systems from the exemption in any past
11801186 year or future years until May 30, 2030, with respect to
11811187 contracts or projects entered into on or before May 30, 2027;
11821188 it being the sole intent that failure of the Legislature to
11831189 enact legislation to reinstate the exemption for new contracts
11841190 or projects after May 30, 2027, shall affect only the
11851191 availability of the exemption to new contracts and projects
11861192 after that date and shall not affect availability of the
11871193 exemption for contracts or projects entered into on or before
11881194 May 30, 2027, for which the exemption shall be available until
11891195 May 30, 2030.
1190-(50) The gross proceeds from the sale or sales within
1191-school buildings of lunches to pupils of kindergarten,
1192-grammar, and high schools, either public or private, that are
1193-not sold for profit.
1194-(51) The gross proceeds of services provided by
1195-photographers, including, but not limited to, sitting fees and
1196-consultation fees, even when provided as part of a transaction
1197-ultimately involving the sale of one or more photographs, so
1198-long as the exempt services are separately stated to the
1196+560
11991197 561
12001198 562
12011199 563
12021200 564
12031201 565
12041202 566
12051203 567
12061204 568
12071205 569
12081206 570
12091207 571
12101208 572
12111209 573
12121210 574
12131211 575
12141212 576
12151213 577
12161214 578
12171215 579
12181216 580
12191217 581
12201218 582
12211219 583
12221220 584
12231221 585
12241222 586
1225-587
1226-588 HB269 Engrossed
1223+587 HB269 INTRODUCED
12271224 Page 22
1225+May 30, 2030.
1226+(50) The gross proceeds from the sale or sales within
1227+school buildings of lunches to pupils of kindergarten,
1228+grammar, and high schools, either public or private, that are
1229+not sold for profit.
1230+(51) The gross proceeds of services provided by
1231+photographers, including, but not limited to, sitting fees and
1232+consultation fees, even when provided as part of a transaction
1233+ultimately involving the sale of one or more photographs, so
12281234 long as the exempt services are separately stated to the
12291235 customer on a bill of sale, invoice, or like memorialization
12301236 of the transaction. For transactions occurring before October
12311237 1, 2017, neither the Department of Revenue nor local tax
12321238 officials may seek payment for sales tax not collected. With
12331239 regard to such transactions in which sales tax was collected
12341240 and remitted on services provided by photographers, neither
12351241 the taxpayer nor the entity remitting sales tax shall have the
12361242 right to seek refund of such tax.
12371243 (52) a. For the period commencing on June 1, 2018, and
12381244 ending 10 years thereafter, unless extended by an act of the
12391245 Legislature, the gross proceeds of sales of bullion or money,
12401246 as defined in Section 40-1-1(7).
12411247 b. For purposes of this subdivision, the following
12421248 words or terms shall be defined and interpreted as follows:
12431249 1. Bullion. Gold, silver, platinum, palladium, or a
12441250 combination of each precious metal, that has gone through a
12451251 refining process and for which the item's value depends on its
12461252 mass and purity, and not on its form, numismatic value, or
12471253 other value. The term includes bullion in the form of bars,
1248-ingots, rounds, or coins that meet the requirements set forth
1249-above. Qualifying bullion may contain other metals or
1250-substances, provided that the other substances are minimal in
1251-value compared with the value of the gold, silver, platinum,
1252-or palladium and the other substances do not add value to the
1253-item. For purposes of this subparagraph, "gold, silver,
1254-platinum, or palladium" does not include jewelry or works of
1255-art.
1256-2. Mass. An item's mass is its weight in precious
1254+588
12571255 589
12581256 590
12591257 591
12601258 592
12611259 593
12621260 594
12631261 595
12641262 596
12651263 597
12661264 598
12671265 599
12681266 600
12691267 601
12701268 602
12711269 603
12721270 604
12731271 605
12741272 606
12751273 607
12761274 608
12771275 609
12781276 610
12791277 611
12801278 612
12811279 613
12821280 614
1283-615
1284-616 HB269 Engrossed
1281+615 HB269 INTRODUCED
12851282 Page 23
1283+other value. The term includes bullion in the form of bars,
1284+ingots, rounds, or coins that meet the requirements set forth
1285+above. Qualifying bullion may contain other metals or
1286+substances, provided that the other substances are minimal in
1287+value compared with the value of the gold, silver, platinum,
1288+or palladium and the other substances do not add value to the
1289+item. For purposes of this subparagraph, "gold, silver,
1290+platinum, or palladium" does not include jewelry or works of
1291+art.
12861292 2. Mass. An item's mass is its weight in precious
12871293 metal.
12881294 3. Numismatic Value. An external value above and beyond
12891295 the base value of the underlying precious metal, due to the
12901296 item's rarity, condition, age, or other external factor.
12911297 4. Purity. An item's purity is the proportion of
12921298 precious metal contained within.
12931299 c. In order for bullion to qualify for the sales tax
12941300 exemption, gold, silver, platinum, and palladium items must
12951301 meet all of the following requirements:
12961302 1. Must be refined.
12971303 2. Must contain at least 80 percent gold, silver,
12981304 platinum, or palladium or some combination of these metals.
12991305 3. The sales price of the item must fluctuate with and
13001306 depend on the market price of the underlying precious metal,
13011307 and not on the item's rarity, condition, age, or other
13021308 external factor.
13031309 (53) a. The gross proceeds of the initial retail sales
13041310 of adaptive equipment that is permanently affixed to a motor
13051311 vehicle.
1306-b. For the purposes of this subdivision, the following
1307-words or terms shall be defined and interpreted as follows:
1308-1. Adaptive Equipment. Equipment not generally used by
1309-persons with normal mobility that is appropriate for use in a
1310-motor vehicle and that is not normally provided by a motor
1311-vehicle manufacturer.
1312-2. Motor Vehicle. A vehicle as defined in Section
1313-40-12-240.
1314-3. Motor Vehicle Manufacturer. Every person engaged in
1312+616
13151313 617
13161314 618
13171315 619
13181316 620
13191317 621
13201318 622
13211319 623
13221320 624
13231321 625
13241322 626
13251323 627
13261324 628
13271325 629
13281326 630
13291327 631
13301328 632
13311329 633
13321330 634
13331331 635
13341332 636
13351333 637
13361334 638
13371335 639
13381336 640
13391337 641
13401338 642
1341-643
1342-644 HB269 Engrossed
1339+643 HB269 INTRODUCED
13431340 Page 24
1341+vehicle.
1342+b. For the purposes of this subdivision, the following
1343+words or terms shall be defined and interpreted as follows:
1344+1. Adaptive Equipment. Equipment not generally used by
1345+persons with normal mobility that is appropriate for use in a
1346+motor vehicle and that is not normally provided by a motor
1347+vehicle manufacturer.
1348+2. Motor Vehicle. A vehicle as defined in Section
1349+40-12-240.
13441350 3. Motor Vehicle Manufacturer. Every person engaged in
13451351 the business of constructing or assembling vehicles or
13461352 manufactured homes.
13471353 c. In order to qualify for the exemption provided for
13481354 herein, the adaptive equipment must be separately stated to
13491355 the customer on a bill of sale, invoice, or like
13501356 memorialization of the transaction.
13511357 (54) For the period commencing on October 1, 2022, and
13521358 ending September 30, 2027, unless extended by an act of the
13531359 Legislature, the gross receipts derived from the sale of
13541360 producer value added agricultural products when the sale is
13551361 made by the producer or by the producer's immediate family, or
13561362 for the producer by the producer's employees.
13571363 (b) Any violation of any provision of this section
13581364 shall be punishable in a court of competent jurisdiction by a
13591365 fine of not less than five hundred dollars ($500) and no more
13601366 than two thousand dollars ($2,000) and imprisonment of not
13611367 less than six months nor more than one year in the county
13621368 jail."
13631369 Section 2. Section 40-12-223, Code of Alabama 1975, is
1364-amended to read as follows:
1365-"§40-12-223
1366-There are exempted from the computation of the amount
1367-of the tax levied, assessed, or payable under this article all
1368-of the following:
1369-(1) The gross proceeds accruing from the leasing or
1370-rental of a film or films to a lessee who charges, or proposes
1371-to charge, admission for viewing the film or films.
1372-(2) The gross proceeds accruing from any charge in
1370+644
13731371 645
13741372 646
13751373 647
13761374 648
13771375 649
13781376 650
13791377 651
13801378 652
13811379 653
13821380 654
13831381 655
13841382 656
13851383 657
13861384 658
13871385 659
13881386 660
13891387 661
13901388 662
13911389 663
13921390 664
13931391 665
13941392 666
13951393 667
13961394 668
13971395 669
13981396 670
1399-671
1400-672 HB269 Engrossed
1397+671 HB269 INTRODUCED
14011398 Page 25
1399+Section 2. Section 40-12-223, Code of Alabama 1975, is
1400+amended to read as follows:
1401+"§40-12-223
1402+There are exempted from the computation of the amount
1403+of the tax levied, assessed, or payable under this article all
1404+of the following:
1405+(1) The gross proceeds accruing from the leasing or
1406+rental of a film or films to a lessee who charges, or proposes
1407+to charge, admission for viewing the film or films.
14021408 (2) The gross proceeds accruing from any charge in
14031409 respect to the use of docks or docking facilities furnished
14041410 for boats or other craft operated on waterways.
14051411 (3) The gross proceeds accruing from any charge made by
14061412 a landlord to a tenant in respect of the leasing or furnishing
14071413 of tangible personal property to be used on the premises of
14081414 real property leased by the same landlord to the same tenant
14091415 for use as a residence or dwelling place, including mobile
14101416 homes.
14111417 (4) The gross proceeds accruing from the leasing or
14121418 rental of tangible personal property to a lessee who acquires
14131419 possession of the property for the purpose of leasing or
14141420 renting to another the same property under a leasing or rental
14151421 transaction subject to this article.
14161422 (5) The gross proceeds accruing from any charge made by
14171423 a landlord to a tenant in respect to the leasing or furnishing
14181424 of tangible personal property to be used on the premises of
14191425 any room or rooms, lodging, or accommodations leased or rented
14201426 to transients in any hotel, motel, inn, tourist camp, tourist
14211427 cabin, or any other place in which rooms, lodgings, or
1422-accommodations are regularly furnished to transients for a
1423-consideration.
1424-(6) The gross proceeds accruing from the leasing or
1425-rental of tangible personal property which the state is
1426-prohibited from taxing under the Constitution or laws of the
1427-United States or under the constitution of the state.
1428-(7) The gross proceeds accruing from the leasing or
1429-rental of nuclear fuel assemblies together with the nuclear
1430-material contained therein and other nuclear material used or
1428+672
14311429 673
14321430 674
14331431 675
14341432 676
14351433 677
14361434 678
14371435 679
14381436 680
14391437 681
14401438 682
14411439 683
14421440 684
14431441 685
14441442 686
14451443 687
14461444 688
14471445 689
14481446 690
14491447 691
14501448 692
14511449 693
14521450 694
14531451 695
14541452 696
14551453 697
14561454 698
1457-699
1458-700 HB269 Engrossed
1455+699 HB269 INTRODUCED
14591456 Page 26
1457+cabin, or any other place in which rooms, lodgings, or
1458+accommodations are regularly furnished to transients for a
1459+consideration.
1460+(6) The gross proceeds accruing from the leasing or
1461+rental of tangible personal property which the state is
1462+prohibited from taxing under the Constitution or laws of the
1463+United States or under the constitution of the state.
1464+(7) The gross proceeds accruing from the leasing or
1465+rental of nuclear fuel assemblies together with the nuclear
14601466 material contained therein and other nuclear material used or
14611467 useful in the production of electricity and assemblies
14621468 containing ionizing radiation sources together with the
14631469 ionizing radiation sources contained therein used or useful in
14641470 medical treatment or scientific research.
14651471 (8) A transaction in which the lessor leases a truck or
14661472 tractor-trailer or semitrailer for operation over the public
14671473 roads and highways and such lessor furnishes a driver or
14681474 drivers for each vehicle, and the transaction shall be deemed
14691475 to constitute the rendition of service and not a "leasing or
14701476 rental" within the meaning of this article.
14711477 (9) The gross proceeds accruing from the leasing or
14721478 rental of vehicles in interchange between regulated motor
14731479 carriers on a per diem basis.
14741480 (10) The gross proceeds accruing from the leasing or
14751481 rental of all structures, devices, facilities, and
14761482 identifiable components of any thereof acquired primarily for
14771483 the control, reduction, or elimination of air or water
14781484 pollution, and the gross proceeds accruing from the leasing or
14791485 rental of all materials used or intended for use in structures
1480-built primarily for the control, reduction, or elimination of
1481-air and water pollution.
1482-(11) The gross proceeds derived by the lessor, which
1483-term includes a sublessor, from the leasing or rental of
1484-tangible personal property when the lessor and lessee, which
1485-term includes a sublessee, are wholly-owned subsidiary
1486-corporations of the same parent corporation or one is the
1487-wholly-owned subsidiary of the other; provided, that the
1488-appropriate sales or use tax, if any was due, has been paid on
1486+700
14891487 701
14901488 702
14911489 703
14921490 704
14931491 705
14941492 706
14951493 707
14961494 708
14971495 709
14981496 710
14991497 711
15001498 712
15011499 713
15021500 714
15031501 715
15041502 716
15051503 717
15061504 718
15071505 719
15081506 720
15091507 721
15101508 722
15111509 723
15121510 724
15131511 725
15141512 726
1515-727
1516-728 HB269 Engrossed
1513+727 HB269 INTRODUCED
15171514 Page 27
1515+rental of all materials used or intended for use in structures
1516+built primarily for the control, reduction, or elimination of
1517+air and water pollution.
1518+(11) The gross proceeds derived by the lessor, which
1519+term includes a sublessor, from the leasing or rental of
1520+tangible personal property when the lessor and lessee, which
1521+term includes a sublessee, are wholly-owned subsidiary
1522+corporations of the same parent corporation or one is the
1523+wholly-owned subsidiary of the other; provided, that the
15181524 appropriate sales or use tax, if any was due, has been paid on
15191525 the item of personal property; and provided further, that in
15201526 the event of any subsequent subleasing of the tangible
15211527 personal property to any person other than any sister, parent,
15221528 or subsidiary corporation, any privilege or license tax due
15231529 and payable with respect to that subsequent subleasing under
15241530 the provisions of this article shall be paid.
15251531 (12) The gross proceeds accruing from a transaction
15261532 which involves the leasing or rental of vessels or railroad
15271533 equipment which are engaged in interstate or foreign commerce,
15281534 or both.
15291535 (13) The gross proceeds accruing from the leasing or
15301536 rental of aircraft, replacement parts, components, systems,
15311537 sundries, and supplies affixed or used on the aircraft and all
15321538 ground support equipment and vehicles used by or for the
15331539 aircraft to or by a certificated or licensed air carrier with
15341540 a hub operation within this state , for use in conducting
15351541 intrastate, interstate, or foreign commerce for transporting
1536-people or property by air. The exemption provided in this
1537-subdivision shall not apply to county or municipal lease or
1538-rental taxes unless approved by resolution or ordinance
1539-adopted by the local governing body. The exemption provided by
1540-this subdivision shall expire on September 30, 2029. For the
1541-purpose of this subdivision, the words "hub operation within
1542-this state" shall be construed to have both of the following
1543-criteria:
1544-a. There originates from the location 15 or more flight
1545-departures and five or more different first-stop destinations
1546-five days per week for six or more months during the calendar
1542+people or property by air. For the purpose of this
1543+subdivision, the words "hub operation within this state" shall
1544+728
15471545 729
15481546 730
15491547 731
15501548 732
15511549 733
15521550 734
15531551 735
15541552 736
15551553 737
15561554 738
15571555 739
15581556 740
15591557 741
15601558 742
15611559 743
15621560 744
15631561 745
15641562 746
15651563 747
15661564 748
15671565 749
15681566 750
15691567 751
15701568 752
15711569 753
15721570 754
1573-755
1574-756 HB269 Engrossed
1571+755 HB269 INTRODUCED
15751572 Page 28
1573+subdivision, the words "hub operation within this state" shall
1574+be construed to have both of the following criteria:
1575+a. There originates from the location 15 or more flight
1576+departures and five or more different first-stop destinations
15761577 five days per week for six or more months during the calendar
15771578 year.
15781579 b. Passengers, property, or both, are regularly
15791580 exchanged at the location between flights of the same or a
15801581 different certificated or licensed air carrier.
15811582 (14) The gross proceeds derived by the lessor, which
15821583 term includes a sublessor, from the leasing of tangible
15831584 personal property under all of the following conditions:
15841585 a. Prior to being leased under the lease subject to
15851586 this exemption, the leased tangible personal property shall
15861587 have been owned, or considered to be owned for either Alabama
15871588 or federal income tax purposes or both, or subject to
15881589 acquisition pursuant to a binding contract, by the lessee or
15891590 by a corporation, partnership, or other entity controlled by,
15901591 or under common control with, the lessee.
15911592 b. The leased tangible personal property, or the right
15921593 to ownership thereof, shall have been acquired by the lessor
15931594 from the lessee or a corporation, partnership, or other entity
15941595 controlled by, or under common control with, that lessee and
15951596 leased back to the lessee under a lease that is considered a
15961597 lease and not a sale for either Alabama or federal income tax
15971598 purposes, or both, and that has a term of not less than 15
15981599 years, except that the lessor and the lessee may agree in the
15991600 lease or any subsequent amendment thereof for the termination
16001601 of the lease on any date through purchase of the leased
1601-tangible personal property by the lessee, which right to
1602-purchase the property shall be exercisable solely at the
1603-option of the lessee.
1604-c. The appropriate sales or use tax levied by the state
1602+756
16051603 757
16061604 758
16071605 759
16081606 760
16091607 761
16101608 762
16111609 763
16121610 764
16131611 765
16141612 766
16151613 767
16161614 768
16171615 769
16181616 770
16191617 771
16201618 772
16211619 773
16221620 774
16231621 775
16241622 776
16251623 777
16261624 778
16271625 779
16281626 780
16291627 781
16301628 782
1631-783
1632-784 HB269 Engrossed
1629+783 HB269 INTRODUCED
16331630 Page 29
1631+of the lease on any date through purchase of the leased
1632+tangible personal property by the lessee, which right to
1633+purchase the property shall be exercisable solely at the
1634+option of the lessee.
16341635 c. The appropriate sales or use tax levied by the state
16351636 shall have been paid with respect to the acquisition or use of
16361637 the leased tangible personal property, or, alternatively, the
16371638 acquisition or use of that property shall be exempt by law
16381639 from such sales or use tax.
16391640 d. The leased tangible personal property shall be
16401641 installed in or about an industrial plant or other real
16411642 property that was specially constructed or modified for the
16421643 location and use of the tangible personal property and that is
16431644 owned, or considered to be owned, for either Alabama or
16441645 federal income tax purposes or both, by a corporation,
16451646 partnership, or other entity controlled by, or under common
16461647 control with, the lessee of such tangible personal property.
16471648 e. The leased tangible property shall be used only by a
16481649 lessee engaged in the iron and steel industry, and the
16491650 exemption from the tax levied by this article shall apply only
16501651 to the gross proceeds derived from leases that become binding
16511652 contracts of the parties thereto within 180 calendar days
16521653 following the date on which the act adding the exemption
16531654 contained in this subsection (14) shall become effective.
16541655 (15) The gross proceeds accruing from a motor vehicle
16551656 lease transaction for a duration of at least 180 days with the
16561657 federal government, or any state, county, or municipal entity
16571658 within the state, including a public school board or an
16581659 individual public school, or any entity eligible for a sales
1659-tax exemption under federal law or Section 40-23-5.
1660-(16) The gross receipts from the lease of any aircraft
1661-manufactured or delivered to a lessee in this state if the
1662-aircraft is not permanently domiciled in Alabama during the
1660+784
16631661 785
16641662 786
16651663 787
16661664 788
16671665 789
16681666 790
16691667 791
16701668 792
16711669 793
16721670 794
16731671 795
16741672 796
16751673 797
16761674 798
16771675 799
16781676 800
16791677 801
16801678 802
16811679 803
16821680 804
16831681 805
16841682 806
16851683 807
16861684 808
16871685 809
16881686 810
1689-811
1690-812 HB269 Engrossed
1687+811 HB269 INTRODUCED
16911688 Page 30
1692-aircraft is not permanently domiciled in Alabama during the
1693-term of the lease and is removed to another state by the
1694-lessee.
1695-a. Under this subdivision, an aircraft shall be
1696-considered not permanently domiciled in Alabama during the
1697-term of the lease if either of the following non-exclusive
1698-conditions is true:
1699-1. The hanger, airstrip, or other housing unit in which
1700- the aircraft primarily based, departs from, and returns to in
1701-its normal operation is located outside of Alabama; or
1702-2. The lessee’s headquarters is not in Alabama on the
1703-date the lessee commences, and the aircraft will be operated
1704-either by a: (1) certificated air carrier holding certificate
1705-of public convenience under 49 U.S.C. §40102; or (2) a foreign
1706-air carrier or intrastate air carrier, as defined by 49 U.S.C.
1707-§40102.
1708-b. The exemption provided in this subdivision shall not
1709-apply to county or municipal lease or rental taxes unless
1710-approved by resolution or ordinance adopted by the local
1711-governing body.
1712-c. The exemption provided by this subdivision shall
1713-expire on September 30, 2029."
1689+individual public school, or any entity eligible for a sales
1690+tax exemption under federal law or Section 40-23-5."
17141691 Section 3. This act shall become effective on September
17151692 1, 2024.
1693+812
17161694 813
17171695 814
1718-815
1719-816
1720-817
1721-818
1722-819
1723-820
1724-821
1725-822
1726-823
1727-824
1728-825
1729-826
1730-827
1731-828
1732-829
1733-830
1734-831
1735-832
1736-833
1737-834
1738-835 HB269 Engrossed
1739-Page 31
1740-1, 2024.
1741-House of Representatives
1742-Read for the first time and referred
1743-to the House of Representatives
1744-committee on Ways and Means
1745-Education
1746-................29-Feb-24
1747-Read for the second time and placed
1748-on the calendar:
1749- 1 amendment
1750-................25-Apr-24
1751-Read for the third time and passed
1752-as amended
1753-Yeas 101
1754-Nays 0
1755-Abstains 0
1756-................30-Apr-24
1757-John Treadwell
1758-Clerk
1759-836
1760-837
1761-838
1762-839
1763-840
1764-841
1765-842
1766-843
1767-844
1768-845
1769-846
1770-847
1771-848
1772-849
1773-850
1774-851
1775-852
1776-853
1777-854
1778-855
1779-856
1780-857