Alabama 2025 Regular Session

Alabama House Bill HB386 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	~~HB386ENGROSSED~~
	1	+	HB386INTRODUCED
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3	3		HB386
4		-	~~9J9WTBB-2~~
	4	+	L7HRAYA-1
5	5		By Representatives Garrett, Stadthagen, Colvin, Brinyark,
6	6		Kirkland, Marques, Sorrells, Rehm, Whorton, Paschal, Smith,
7	7		Shaw, Butler, Estes, Moore (P), Robertson, Lipscomb, Wilcox,
8	8		Harrison, Hammett, Pettus, Easterbrook, Stubbs, Starnes,
9	9		Standridge, Carns, Holk-Jones, Givens, Underwood, Ross,
10	10		Mooney, Ingram, Baker, Treadaway, Sells, Rigsby, Yarbrough,
11	11		Woods, DuBose, Lovvorn, Lamb, Gidley, Shirey, Fidler, Hulsey,
12		-	Lomax, ~~Mr.Speaker~~, Hurst, Kiel
	12	+	Lomax, Ledbetter, Hurst, Kiel
13	13		RFD: Ways and Means Education
14	14		First Read: 05-Mar-25
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26		-	12 ~~HB386 Engrossed~~
	26	+	12 L7HRAYA-1 02/25/2025 KHF (F)KHF 2025-34
27	27		Page 1
28	28		First Read: 05-Mar-25
	29	+	SYNOPSIS:
	30	+	Under existing law, the state imposes sales or
	31	+	use taxes upon certain persons, firms, or corporations
	32	+	at a general rate of four percent. Sales of certain
	33	+	items are taxed at a reduced rate, including food,
	34	+	which is taxed at three percent.
	35	+	This bill would reduce the sales and use tax
	36	+	rate on food to two percent, on September 1, 2025.
29	37		A BILL
30	38		TO BE ENTITLED
31	39		AN ACT
32	40		Relating to sales taxes; to amend Sections 40-23-2 and
33	41		40-23-61, Code of Alabama 1975, to reduce the state sales and
34	42		use tax rate on food to two percent on September 1, 2025.
35	43		BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
36	44		Section 1. Sections 40-23-2 and 40-23-61, Code of
37	45		Alabama 1975, are hereby amended as follows:
38	46		"§40-23-2
39	47		There is levied, in addition to all other taxes of
40	48		every kind now imposed by law, and shall be collected as
41	49		herein provided, a privilege or license tax against the person
42	50		on account of the business activities and in the amount to be
43		-	determined by the application of rates against gross sales, or
44		-	gross receipts, as the case may be, as follows:
45		-	(1) Upon every person, firm, or corporation, (including
46		-	the State of Alabama and its Alcoholic Beverage Control Board
47		-	in the sale of alcoholic beverages of all kinds, the
48		-	University of Alabama, Auburn University, and all other
49		-	institutions of higher learning in the state, whether the
50		-	institutions be denominational, state, county, or municipal
51		-	institutions, any association or other agency or
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	80	+	on account of the business activities and in the amount to be
	81	+	determined by the application of rates against gross sales, or
	82	+	gross receipts, as the case may be, as follows:
	83	+	(1) Upon every person, firm, or corporation, (including
	84	+	the State of Alabama and its Alcoholic Beverage Control Board
	85	+	in the sale of alcoholic beverages of all kinds, the
	86	+	University of Alabama, Auburn University, and all other
	87	+	institutions of higher learning in the state, whether the
	88	+	institutions be denominational, state, county, or municipal
81	89		institutions, any association or other agency or
82	90		instrumentality of the institutions) engaged or continuing
83	91		within this state, in the business of selling at retail any
84	92		tangible personal property whatsoever, including merchandise
85	93		and commodities of every kind and character, (not including,
86	94		however, bonds or other evidences of debts or stocks, nor
87	95		sales of material and supplies to any person for use in
88	96		fulfilling a contract for the painting, repair, or
89	97		reconditioning of vessels, barges, ships, other watercraft,
90	98		and commercial fishing vessels of over five tons load
91	99		displacement as registered with the U.S. Coast Guard and
92	100		licensed by the State of Alabama Department of Conservation
93	101		and Natural Resources) an amount equal to four percent of the
94	102		gross proceeds of sales of the business except where a
95	103		different amount is expressly provided herein. Provided,
96	104		however, that any person engaging or continuing in business as
97	105		a retailer and wholesaler or jobber shall pay the tax required
98	106		on the gross proceeds of retail sales of the business at the
99	107		rates specified, when his or her books are kept so as to show
100	108		separately the gross proceeds of sales of each business, and
101		-	when his or her books are not kept he or she shall pay the tax
102		-	as a retailer, on the gross sales of the business.
103		-	Where any used part including tires of an automotive
104		-	vehicle or a truck trailer, semitrailer, or house trailer is
105		-	taken in trade, or in a series of trades, as a credit or part
106		-	payment on the sale of a new or rebuilt part or tire, the tax
107		-	levied herein shall be paid on the net difference, that is,
108		-	the price of the new or used part or tire sold less the credit
109		-	for the used part or tire taken in trade, provided, however,
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137		-	56 HB386 ~~Engrossed~~
	136	+	56 HB386 INTRODUCED
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	138	+	separately the gross proceeds of sales of each business, and
	139	+	when his or her books are not kept he or she shall pay the tax
	140	+	as a retailer, on the gross sales of the business.
	141	+	Where any used part including tires of an automotive
	142	+	vehicle or a truck trailer, semitrailer, or house trailer is
	143	+	taken in trade, or in a series of trades, as a credit or part
	144	+	payment on the sale of a new or rebuilt part or tire, the tax
	145	+	levied herein shall be paid on the net difference, that is,
	146	+	the price of the new or used part or tire sold less the credit
139	147		for the used part or tire taken in trade, provided, however,
140	148		this provision shall not be construed to include batteries.
141	149		(2) Upon every person, firm, or corporation engaged or
142	150		continuing within this state in the business of conducting or
143	151		operating places of amusement or entertainment, billiard and
144	152		pool rooms, bowling alleys, amusement devices, musical
145	153		devices, theaters, opera houses, moving picture shows,
146	154		vaudevilles, amusement parks, athletic contests, including
147	155		wrestling matches, prize fights, boxing and wrestling
148	156		exhibitions, football and baseball games, (including athletic
149	157		contests, conducted by or under the auspices of any
150	158		educational institution within this state, or any athletic
151	159		association thereof, or other association whether the
152	160		institution or association be a denominational, a state, or
153	161		county, or a municipal institution, or association or a state,
154	162		county, or city school, or other institution, association or
155	163		school) skating rinks, race tracks, golf courses, or any other
156	164		place at which any exhibition, display, amusement, or
157	165		entertainment is offered to the public or place or places
158	166		where an admission fee is charged, including public bathing
159		-	places and public dance halls of every kind and description
160		-	within the State of Alabama, an amount equal to four percent
161		-	of the gross receipts of any such business. Provided, however,
162		-	notwithstanding any language to the contrary in the prior
163		-	portion of this subdivision, the tax provisions so specified
164		-	shall not apply to any athletic event conducted by a public or
165		-	nonpublic primary or secondary school or any athletic event
166		-	conducted by or under the auspices of the Alabama High School
167		-	Athletic Association. The tax amount which would have been
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195		-	84 HB386 ~~Engrossed~~
	194	+	84 HB386 INTRODUCED
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	196	+	where an admission fee is charged, including public bathing
	197	+	places and public dance halls of every kind and description
	198	+	within the State of Alabama, an amount equal to four percent
	199	+	of the gross receipts of any such business. Provided, however,
	200	+	notwithstanding any language to the contrary in the prior
	201	+	portion of this subdivision, the tax provisions so specified
	202	+	shall not apply to any athletic event conducted by a public or
	203	+	nonpublic primary or secondary school or any athletic event
	204	+	conducted by or under the auspices of the Alabama High School
197	205		Athletic Association. The tax amount which would have been
198	206		collected pursuant to this subdivision shall continue to be
199	207		collected by the public or nonpublic primary or secondary
200	208		school, but shall be retained by the school that collected it
201	209		and shall be used by the school for school purposes.
202	210		(3) Upon every person, firm, or corporation engaged or
203	211		continuing within this state in the business of selling at
204	212		retail machines used in mining, quarrying, compounding,
205	213		processing, and manufacturing of tangible personal property an
206	214		amount equal to one and one-half percent of the gross proceeds
207	215		of the sale of the machines. The term "machine," as herein
208	216		used, shall include machinery which is used for mining,
209	217		quarrying, compounding, processing, or manufacturing tangible
210	218		personal property, and the parts of the machines, attachments,
211	219		and replacements therefor, which are made or manufactured for
212	220		use on or in the operation of the machines and which are
213	221		necessary to the operation of the machines and are customarily
214	222		so used.
215	223		(4) Upon every person, firm, or corporation engaged or
216	224		continuing within this state in the business of selling at
217		-	retail any automotive vehicle or truck trailer, semitrailer,
218		-	or house trailer, or mobile home set-up materials and supplies
219		-	including but not limited to steps, blocks, anchoring, cable
220		-	pipes, and any other materials pertaining thereto, an amount
221		-	equal to two percent of the gross proceeds of sale of the
222		-	automotive vehicle or truck trailer, semitrailer, or house
223		-	trailer, or mobile home set-up materials and supplies
224		-	provided, however, where a person subject to the tax provided
225		-	for in this subdivision withdraws from his or her stock in
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253		-	112 HB386 ~~Engrossed~~
	252	+	112 HB386 INTRODUCED
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	254	+	continuing within this state in the business of selling at
	255	+	retail any automotive vehicle or truck trailer, semitrailer,
	256	+	or house trailer, or mobile home set-up materials and supplies
	257	+	including but not limited to steps, blocks, anchoring, cable
	258	+	pipes, and any other materials pertaining thereto, an amount
	259	+	equal to two percent of the gross proceeds of sale of the
	260	+	automotive vehicle or truck trailer, semitrailer, or house
	261	+	trailer, or mobile home set-up materials and supplies
	262	+	provided, however, where a person subject to the tax provided
255	263		for in this subdivision withdraws from his or her stock in
256	264		trade any automotive vehicle or truck trailer, semitrailer, or
257	265		house trailer for use by him or her or by his or her employee
258	266		or agent in the operation of the business, there shall be
259	267		paid, in lieu of the tax levied herein, a fee of five dollars
260	268		($5) per year or part thereof during which the automotive
261	269		vehicle, truck trailer, semitrailer, or house trailer shall
262	270		remain the property of the person. Each year or part thereof
263	271		shall begin with the day or anniversary date, as the case may
264	272		be, of such withdrawal and shall run for the 12 succeeding
265	273		months or part thereof during which the automotive vehicle,
266	274		truck trailer, semitrailer, or house trailer shall remain the
267	275		property of the person.
268	276		Where any used automotive vehicle or truck trailer,
269	277		semitrailer, or house trailer is taken in trade or in a series
270	278		of trades, as a credit or part payment on the sale of a new or
271	279		used vehicle, the tax levied herein shall be paid on the net
272	280		difference, that is, the price of the new or used vehicle sold
273	281		less the credit for the used vehicle taken in trade.
274	282		Sales of automobiles, motorcycles, trucks, truck
275		-	trailers, travel trailers, campers, housecars, or semitrailers
276		-	that will be registered or titled outside Alabama, that are
277		-	exported or removed from Alabama within 72 hours by the
278		-	purchaser or his or her agent for first use outside Alabama
279		-	are subject to Alabama sales tax in an amount equal to only
280		-	the state automotive sales tax rate, unless the sales tax laws
281		-	of the state in which the purchaser will title or register the
282		-	vehicle allows an Alabama resident to purchase a motor vehicle
283		-	for first titling and registering in Alabama without the
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311		-	140 HB386 ~~Engrossed~~
	310	+	140 HB386 INTRODUCED
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	312	+	Sales of automobiles, motorcycles, trucks, truck
	313	+	trailers, travel trailers, campers, housecars, or semitrailers
	314	+	that will be registered or titled outside Alabama, that are
	315	+	exported or removed from Alabama within 72 hours by the
	316	+	purchaser or his or her agent for first use outside Alabama
	317	+	are subject to Alabama sales tax in an amount equal to only
	318	+	the state automotive sales tax rate, unless the sales tax laws
	319	+	of the state in which the purchaser will title or register the
	320	+	vehicle allows an Alabama resident to purchase a motor vehicle
313	321		for first titling and registering in Alabama without the
314	322		payment of tax to that state. However, in no case shall the
315	323		amount of Alabama state sales tax due on a motor vehicle that
316	324		will be registered or titled for use in another state exceed
317	325		the amount of sales tax that would otherwise have been due in
318	326		the state where the vehicle will be registered or titled for
319	327		first use. In order to qualify as a travel trailer, camper, or
320	328		housecar that will be registered or titled for use in another
321	329		state, the purchaser must provide documentation to the seller
322	330		that the purchaser is not a resident of Alabama as required by
323	331		the Department of Revenue. No such proof is required in the
324	332		sale of an automobile, motorcycle, truck, truck trailer, or
325	333		semitrailer, excluding a travel trailer, camper, or housecar.
326	334		The tax collected under this export provision shall be Alabama
327	335		sales tax and shall exclude county and municipal sales tax. On
328	336		January 1, 2016, and each January 1 thereafter, the Alabama
329	337		Department of Revenue shall publish to the state's website a
330	338		list of states that do not allow drive out provisions to
331	339		Alabama residents. Should the list, required by this
332	340		subsection and relied upon by the taxpayer, be incorrect, the
333		-	taxpayer shall be relieved from the liability concerning the
334		-	miscollection of the state automotive sales tax. Sales of all
335		-	other vehicles such as mobile homes, motor bikes, all terrain
336		-	vehicles, and boats do not qualify for the export exemption
337		-	provision and are taxable unless the dealer can provide
338		-	factual evidence that the vehicle was delivered outside of
339		-	Alabama or to a common carrier for transportation outside
340		-	Alabama. In order for the sale to be exempt from Alabama tax,
341		-	the information relative to the exempt sale shall be
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	368	+	168 HB386 INTRODUCED
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	370	+	subsection and relied upon by the taxpayer, be incorrect, the
	371	+	taxpayer shall be relieved from the liability concerning the
	372	+	miscollection of the state automotive sales tax. Sales of all
	373	+	other vehicles such as mobile homes, motor bikes, all terrain
	374	+	vehicles, and boats do not qualify for the export exemption
	375	+	provision and are taxable unless the dealer can provide
	376	+	factual evidence that the vehicle was delivered outside of
	377	+	Alabama or to a common carrier for transportation outside
	378	+	Alabama. In order for the sale to be exempt from Alabama tax,
371	379		the information relative to the exempt sale shall be
372	380		documented on forms approved by the Revenue Department.
373	381		Of the total $.02 tax on each dollar of sale provided
374	382		hereunder, 58 percent of the total tax generated by this
375	383		subdivision (4) shall be deposited to the credit of the
376	384		Education Trust Fund and 42 percent of the total tax generated
377	385		by this subdivision (4) shall be deposited to the credit of
378	386		the State General Fund.
379	387		(5) Upon every person, firm, or corporation engaged or
380	388		continuing within this state in the business of selling
381	389		through coin-operated dispensing machines, food and food
382	390		products for human consumption, not including beverages other
383	391		than coffee, milk, milk products, and substitutes therefor,
384	392		there is levied a tax equal to three percent of the cost of
385	393		the food, food products, and beverages sold through the
386	394		machines, which cost for the purpose of this subdivision shall
387	395		be the gross proceeds of sales of the business.
388	396		(6) Upon every person, firm, or corporation engaged or
389	397		continuing within this state in the business of selling food
390	398		as defined in Section 40-23-1, there is a tax levied equal to
391		-	four percent of the gross proceeds of the sale of food. On
392		-	September 1, 2023, the tax rate shall be reduced to three
393		-	percent of the gross proceeds of the sale of food . On
394		-	September 1, 20242025, the tax rate shall be reduced to two
395		-	percent, if the average of the estimated growth in the total
396		-	net receipts from all revenue sources to the Education Trust
397		-	Fund for the fiscal year ending September 30, 2025, as
398		-	certified by the Director of Finance and the Legislative
399		-	Fiscal Officer, respectively, pursuant to Section 260.02 of
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429		-	Fiscal Officer, respectively, pursuant to Section 260.02 of
430		-	the Constitution of Alabama of 2022, is at least three and
431		-	one-half percent higher than the previous fiscal year. If the
432		-	growth requirement is not satisfied for the fiscal year ending
433		-	September 30, 2025, the rate shall be reduced to two percent
434		-	in a subsequent fiscal year when the growth requirement is
435		-	satisfied."
	428	+	as defined in Section 40-23-1, there is a tax levied equal to
	429	+	four percent of the gross proceeds of the sale of food. On
	430	+	September 1, 2023, the tax rate shall be reduced to three
	431	+	percent. On September 1, 20242025, the tax rate shall be
	432	+	reduced to two percent , if the average of the estimated growth
	433	+	in the total net receipts from all revenue sources to the
	434	+	Education Trust Fund for the fiscal year ending September 30,
	435	+	2025, as certified by the Director of Finance and the
	436	+	Legislative Fiscal Officer, respectively, pursuant to Section
	437	+	260.02 of the Constitution of Alabama of 2022, is at least
	438	+	three and one-half percent higher than the previous fiscal
	439	+	year. If the growth requirement is not satisfied for the
	440	+	fiscal year ending September 30, 2025, the rate shall be
	441	+	reduced to two percent in a subsequent fiscal year when the
	442	+	growth requirement is satisfied ."
436	443		"§40-23-61
437	444		(a) An excise tax is hereby imposed on the storage,
438	445		use, or other consumption in this state of tangible personal
439	446		property, not including, however, materials and supplies
440	447		bought for use in fulfilling a contract for the painting,
441	448		repairing or reconditioning of vessels, barges, ships, other
442	449		watercraft and commercial fishing vessels of over five tons
443	450		load displacement as registered with the U.S. Coast Guard and
444	451		licensed by the State of Alabama Department of Conservation
445	452		and Natural Resources, purchased at retail on or after October
446	453		1, 1965, for storage, use or other consumption in this state
447	454		at the rate of four percent of the sales price of the property
448	455		or the amount of tax collected by the seller, whichever is
449	456		greater; provided, however, when the seller follows the
450		-	Department of Revenue's suggested use tax brackets and his or
451		-	her records prove that his or her following the brackets
452		-	resulted in a net undercollection of tax for the month, he or
453		-	she may report the tax due or tax collected, whichever is
454		-	less, except as provided in subsections (b), (c), and (d).
455		-	(b) An excise tax is hereby imposed on the storage,
456		-	use, or other consumption in this state of any machines used
457		-	in mining, quarrying, compounding, processing, and
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485		-	224 HB386 ~~Engrossed~~
	484	+	224 HB386 INTRODUCED
486	485		Page 9
	486	+	greater; provided, however, when the seller follows the
	487	+	Department of Revenue's suggested use tax brackets and his or
	488	+	her records prove that his or her following the brackets
	489	+	resulted in a net undercollection of tax for the month, he or
	490	+	she may report the tax due or tax collected, whichever is
	491	+	less, except as provided in subsections (b), (c), and (d).
	492	+	(b) An excise tax is hereby imposed on the storage,
	493	+	use, or other consumption in this state of any machines used
487	494		in mining, quarrying, compounding, processing, and
488	495		manufacturing of tangible personal property, purchased at
489	496		retail on or after October 1, 1965, at the rate of one and
490	497		one-half percent of the sales price of any such machine or the
491	498		amount of tax collected by the seller, whichever is greater;
492	499		provided, however, when the seller follows the Department of
493	500		Revenue's suggested use tax brackets and his or her records
494	501		prove that his or her following the brackets resulted in a net
495	502		undercollection of tax for the month, he or she may report the
496	503		tax due or tax collected, whichever is less; provided, that
497	504		the term "machine," as used in this subsection, shall include
498	505		machinery that is used for mining, quarrying, compounding,
499	506		processing, or manufacturing tangible personal property, and
500	507		the parts of such machines, attachments, and replacements
501	508		therefor, which are made or manufactured for use on or in the
502	509		operation of such machines and which are necessary to the
503	510		operation of such machines and are customarily so used.
504	511		(c)(1) An excise tax is hereby imposed on the storage,
505	512		use or other consumption in this state of any automotive
506	513		vehicle or truck trailer, semitrailer or house trailer, and
507	514		mobile home set-up materials and supplies including but not
508		-	limited to steps, blocks, anchoring, cable pipes and any other
509		-	materials pertaining thereto, purchased at retail on or after
510		-	October 1, 1965, for storage, use, or other consumption in
511		-	this state at the rate of two percent of the sales price of
512		-	such automotive vehicle, truck trailer, semitrailer or house
513		-	trailer, and mobile home set-up materials and supplies as
514		-	specified above, or the amount of tax collected by the seller,
515		-	whichever is greater; provided, however, when the seller
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541	540		250
542	541		251
543		-	252 HB386 ~~Engrossed~~
	542	+	252 HB386 INTRODUCED
544	543		Page 10
	544	+	mobile home set-up materials and supplies including but not
	545	+	limited to steps, blocks, anchoring, cable pipes and any other
	546	+	materials pertaining thereto, purchased at retail on or after
	547	+	October 1, 1965, for storage, use, or other consumption in
	548	+	this state at the rate of two percent of the sales price of
	549	+	such automotive vehicle, truck trailer, semitrailer or house
	550	+	trailer, and mobile home set-up materials and supplies as
	551	+	specified above, or the amount of tax collected by the seller,
545	552		whichever is greater; provided, however, when the seller
546	553		follows the Department of Revenue's suggested use tax brackets
547	554		and his or her records prove that his or her following the
548	555		brackets resulted in a net undercollection of tax for the
549	556		month, he or she may report the tax due or tax collected,
550	557		whichever is less. Where any used automotive vehicle or truck
551	558		trailer, semitrailer, or house trailer is taken in trade, or
552	559		in a series of trades, as a credit or part payment on the sale
553	560		of a new or used vehicle, the tax levied herein shall be paid
554	561		on the net difference, that is, the price of the new or used
555	562		vehicle sold less the credit for the used vehicle taken in
556	563		trade.
557	564		(2) Of the total $.02 tax on each dollar of sale
558	565		provided in this subsection, 58 percent of the total tax
559	566		generated by this subsection shall be deposited to the credit
560	567		of the Education Trust Fund; and 42 percent of the total tax
561	568		generated by this subsection shall be deposited to the credit
562	569		of the State General Fund.
563	570		(d) An excise tax is hereby imposed on the storage,
564	571		use, or other consumption in this state of food as defined in
565	572		Section 40-23-60, at the rate of four percent of the sales
566		-	price of such food. On September 1, 2023, the tax rate shall
567		-	be reduced to three percent of the sales price of such food .
568		-	On September 1, 20242025, the tax rate shall be reduced to two
569		-	percent, if the average of the estimated growth in the total
570		-	net receipts from all revenue sources to the Education Trust
571		-	Fund for the fiscal year ending September 30, 2025, as
572		-	certified by the Director of Finance and the Legislative
573		-	Fiscal Officer, respectively, pursuant to Section 260.02 of
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601		-	280 HB386 ~~Engrossed~~
	600	+	280 HB386 INTRODUCED
602	601		Page 11
603		-	Fiscal Officer, respectively, pursuant to Section 260.02 of
604		-	the Constitution of Alabama of 2022, is at least three and
605		-	one-half percent higher than the previous fiscal year. If the
606		-	growth requirement is not satisfied for the fiscal year ending
607		-	September 30, 2025, the rate shall be reduced to two percent
608		-	in a subsequent fiscal year when the growth requirement is
609		-	satisfied.
	602	+	Section 40-23-60, at the rate of four percent of the sales
	603	+	price of such food. On September 1, 2023, the tax rate shall
	604	+	be reduced to three percent. On September 1, 20242025, the tax
	605	+	rate shall be reduced to two percent , if the average of the
	606	+	estimated growth in the total net receipts from all revenue
	607	+	sources to the Education Trust Fund for the fiscal year ending
	608	+	September 30, 2025, as certified by the Director of Finance
	609	+	and the Legislative Fiscal Officer, respectively, pursuant to
	610	+	Section 260.02 of the Constitution of Alabama of 2022, is at
	611	+	least three and one-half percent higher than the previous
	612	+	fiscal year. If the growth requirement is not satisfied for
	613	+	the fiscal year ending September 30, 2025, the rate shall be
	614	+	reduced to two percent in a subsequent fiscal year when the
	615	+	growth requirement is satisfied .
610	616		(e) Every person storing, using or otherwise consuming
611	617		in this state tangible personal property purchased at retail
612	618		shall be liable for the tax imposed by this article, and the
613	619		liability shall not be extinguished until the tax has been
614	620		paid to this state; provided, that a receipt from a retailer
615	621		maintaining a place of business in this state or a retailer
616	622		authorized by the department, under such rules as it may
617	623		prescribe, to collect the tax imposed hereby and who shall for
618	624		the purpose of this article be regarded as a retailer
619	625		maintaining a place of business in this state, given to the
620	626		purchaser in accordance with Section 40-23-67, shall be
621	627		sufficient to relieve the purchaser from further liability for
622	628		tax to which the receipt may refer.
623	629		(f) An excise tax is hereby imposed on the classes of
624	630		tangible personal property, and at the rates imposed on such
625		-	classes, specified in subsections (a), (b), (c), and (d) on
626		-	the storage, use, or other consumption in the performance of a
627		-	contract in this state of any such tangible personal property,
628		-	new or used, the tax to be measured by the sales price or the
629		-	fair and reasonable market value of the tangible personal
630		-	property when put into use in this state, whichever is less;
631		-	provided, that the tax imposed by this subsection shall not
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659		-	308 HB386 ~~Engrossed~~
	658	+	308 HB386 INTRODUCED
660	659		Page 12
	660	+	tangible personal property, and at the rates imposed on such
	661	+	classes, specified in subsections (a), (b), (c), and (d) on
	662	+	the storage, use, or other consumption in the performance of a
	663	+	contract in this state of any such tangible personal property,
	664	+	new or used, the tax to be measured by the sales price or the
	665	+	fair and reasonable market value of the tangible personal
	666	+	property when put into use in this state, whichever is less;
661	667		provided, that the tax imposed by this subsection shall not
662	668		apply where the taxes imposed by subsection (a), (b), (c), or
663	669		(d) of this section apply."
664	670		Section 2. This act shall become effective on June 1,
665	671		2025.
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667	673		310
668	674		311
669		-	312 HB386 Engrossed
670		-	Page 13
671		-	2025.
672		-	House of Representatives
673		-	Read for the first time and referred
674		-	to the House of Representatives
675		-	committee on Ways and Means
676		-	Education
677		-	................05-Mar-25
678		-	Read for the second time and placed
679		-	on the calendar:
680		-	1 amendment
681		-	................06-Mar-25
682		-	Read for the third time and passed
683		-	as amended
684		-	Yeas 103
685		-	Nays 0
686		-	Abstains 0
687		-	................18-Mar-25
688		-	John Treadwell
689		-	Clerk
	675	+	312
690	676		313
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692	678		315
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