HB451INTRODUCED
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HB451
BYHZVQJ-1
By Representative Woods
RFD: Ways and Means Education
First Read: 19-Mar-25
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5 BYHZVQJ-1 03/18/2025 JRF (F)JRF 2025-1299
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First Read: 19-Mar-25
SYNOPSIS:
Under existing law, the state imposes sales or
use taxes upon the purchase of certain items. Counties
and municipalities impose additional sales and use
taxes. The purchase of certain items are exempt from
these taxes.
This bill would establish the Alabama Broadband
Investment Maximization Act to exempt the purchase of
broadband equipment and supplies from sales and use
tax.
A BILL
TO BE ENTITLED
AN ACT
Relating to taxation ; to establish the Alabama
Broadband Investment Maximization Act; to exempt the purchase
of broadband equipment and supplies from sales and use tax.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and be cited as the
Alabama Broadband Investment Maximization Act.
Section 2. (a) The gross receipts derived from the sale
of equipment, machinery, software, ancillary components,
appurtenances, accessories, or other infrastructure that is
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appurtenances, accessories, or other infrastructure that is
used in whole or in part to: (i) produce broadband
communications services, including broadcasting, distributing,
sending, receiving, storing, transmitting, retransmitting,
amplifying, switching, providing connectivity for, or routing
communications services; or (ii) provide Internet access are
exempt from the state sales and use taxes provided for in
Sections 40-23-2 and 40-23-61, Code of Alabama 1975.
(b) This section does not apply to the retail sale of
personal consumer electronics, including, but not limited to,
smartphones, computers and tablets, and consumer-grade modems
and WiFi routers.
(c) For the purpose of this section, the following
terms and phrases have the following meanings:
(1) BROADBAND COMMUNICATIONS SERVICES.
Telecommunication services, mobile telecommunication services,
video programming services, or direct-to-home satellite
television programming services.
(2) EQUIPMENT. Includes, but is not limited to, wires,
cables, fiber, conduits, antennas, poles, switches, routers,
amplifiers, rectifiers, repeaters, receivers, multiplexers,
duplexers, transmitters, circuit cards, insulating and
protective materials and cases, power equipment, backup power
equipment, diagnostic equipment, storage devices, modems, and
other general central office or headend equipment, such as
channel cards, frames, and cabinets, or equipment used in
successor technologies, including items used to monitor, test,
maintain, enable, or facilitate qualifying equipment,
machinery, software, ancillary components, appurtenances,
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machinery, software, ancillary components, appurtenances,
accessories, or other infrastructure that is used in whole or
in part to provide broadband communications services or
Internet access.
(3) INTERNET ACCESS. A service that enables users to
connect to the Internet to access content, information, or
other services offered over the Internet, including:
a. The purchase, use, or sale of telecommunications by
a provider of Internet access to the extent the
telecommunications are purchased, used, or sold to provide the
Internet access service or otherwise enable users to access
content, information, or other services offered over the
Internet.
b. Services that are incidental to the provision of
Internet access when furnished to users as part of the
Internet access service, such as a homepage, email and instant
messaging, to include voice-capable and video-capable email
and instant messaging, video clips, and personal electronic
storage capacity.
c. A homepage, email and instant messaging, to include
voice-capable and video-capable email and instant messaging,
video clips, and personal electronic storage capacity, that
are provided independently or packaged with Internet access;
and
d. Does not include voice, audio, or video programming,
or other products and services that utilize Internet protocol
or a successor protocol and for which there is a charge,
regardless of whether the charge is separately stated or
aggregated with the charge for services for Internet access.
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aggregated with the charge for services for Internet access.
(d) The exemption provided in this section shall not
apply to county or municipal sales or use taxes unless
approved by resolution or ordinance adopted by the local
governing body.
(e) The exemption provided pursuant to this section
shall be available from September 1, 2025, to August 31, 2028.
Section 3. This act shall become effective on June 1,
2025.
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