HB339INTRODUCED
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HB339
SLJFD88-1
By Representatives Chestnut, Sells, Daniels, Stadthagen,
Warren, Stubbs, Bolton, Tillman
RFD: Ways and Means Education
First Read: 25-Feb-25
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6 SLJFD88-1 02/25/2025 RA (L)RA 2025-996
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First Read: 25-Feb-25
SYNOPSIS:
Under existing law, the state imposes sales and
use taxes upon the sale, storage, use, or other
consumption of certain items within this state.
Counties and municipalities impose additional sales and
use taxes. The sale of certain aircraft are exempt from
these taxes.
This bill would exempt the sale, storage, use,
or other consumption of certain general aviation
aircraft and machinery or equipment installed on the
aircraft from sales and use tax.
In addition, this bill would exempt aircraft and
equipment from rental or lease taxes.
This bill would also exempt aircraft and
equipment from ad valorem taxes.
A BILL
TO BE ENTITLED
AN ACT
Relating to taxation; to exempt the sale, storage, use,
or other consumption of certain general aviation aircraft and
any machinery or equipment installed on these aircraft from
the sales and use tax in certain circumstances, and to exempt
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the sales and use tax in certain circumstances, and to exempt
these aircraft and equipment from lease and rental taxes as
well as ad valorem taxes.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) For the purposes of this act the term
"general aviation aircraft" means an aircraft that meets all
of the following:
(1) Weighs over 12,500 pounds.
(2) Is used in civil aviation.
(3) Is not a commercial aircraft, military aircraft, or
unmanned aerial vehicle or drone.
(4) Is owned or leased by a company whose principal
place of business is in Alabama.
(b) The gross receipts from the sale of general
aviation aircraft and any machinery or equipment to be
installed on the aircraft are exempt from state, county, and
municipal sales and use taxes.
Section 2. Beginning on October 1, 2025, the lease of
any "general aviation aircraft" as defined in Section 1, and
any machinery or equipment to be installed on these aircraft
are exempt from state, county, and municipal lease and rental
taxes.
Section 3. Beginning on October 1, 2024, any "general
aviation aircraft" as defined in Section 1, and any machinery
or equipment to be installed on these aircraft, is exempt from
ad valorem taxation.
Section 4. The Department of Revenue may adopt rules
for the implementation and administration of this act.
Section 5. This act shall become effective on September
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Section 5. This act shall become effective on September
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