Alabama 2025 Regular Session

Alabama House Bill HB548 Compare Versions

Only one version of the bill is available at this time.

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1	1	HB548INTRODUCED
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3	3	HB548
4	4	PS65CEE-1
5	5	By Representative Woods
6	6	RFD: Ways and Means Education
7	7	First Read: 09-Apr-25
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12	12	5 PS65CEE-1 04/08/2025 JRF (F)JRF 2025-1580
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14	14	First Read: 09-Apr-25
15	15	SYNOPSIS:
16	16	Under existing law, the state imposes sales or
17	17	use taxes upon the purchase of certain items. Counties
18	18	and municipalities impose additional sales and use
19	19	taxes. The purchase of certain items are exempt from
20	20	these taxes.
21	21	This bill would establish the Alabama Broadband
22	22	Investment Maximization Act to exempt purchases of
23	23	broadband equipment and supplies from projects funded
24	24	or administered by the Alabama Department of Economic
25	25	and Community Affairs from sales and use tax.
26	26	A BILL
27	27	TO BE ENTITLED
28	28	AN ACT
29	29	Relating to taxation ; to establish the Alabama
30	30	Broadband Investment Maximization Act; to exempt purchases of
31	31	broadband equipment and supplies from projects funded or
32	32	administered by the Alabama Department of Economic and
33	33	Community Affairs from sales and use tax.
34	34	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
35	35	Section 1. This act shall be known and be cited as the
36	36	Alabama Broadband Investment Maximization Act.
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64	64	28 HB548 INTRODUCED
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66	66	Alabama Broadband Investment Maximization Act.
67	67	Section 2. (a) The gross receipts derived from the sale
68	68	of equipment, machinery, software, ancillary components,
69	69	appurtenances, accessories, or other infrastructure that is
70	70	used in whole or in part to: (i) produce broadband
71	71	communications services, including broadcasting, distributing,
72	72	sending, receiving, storing, transmitting, retransmitting,
73	73	amplifying, switching, providing connectivity for, or routing
74	74	communications services; or (ii) provide Internet access are
75	75	exempt from the state sales and use taxes provided for in
76	76	Sections 40-23-2 and 40-23-61, Code of Alabama 1975.
77	77	(b) The exemption provided by this section shall only
78	78	apply to purchases made pursuant to a project funded or
79	79	administered by the Alabama Department of Economic and
80	80	Community Affairs.
81	81	(c) The Department of Revenue may adopt rules to
82	82	implement and administer this section.
83	83	(d) This section does not apply to the retail sale of
84	84	personal consumer electronics, including, but not limited to,
85	85	smartphones, computers and tablets, and computer-grade modems
86	86	and WiFi routers.
87	87	(e) For the purpose of this section, the following
88	88	terms and phrases have the following meanings:
89	89	(1) BROADBAND COMMUNICATIONS SERVICES.
90	90	Telecommunication services, mobile telecommunication services,
91	91	video programming services, or direct-to-home satellite
92	92	television programming services.
93	93	(2) EQUIPMENT. Includes, but is not limited to, wires,
94	94	cables, fiber, conduits, antennas, poles, switches, routers,
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124	124	cables, fiber, conduits, antennas, poles, switches, routers,
125	125	amplifiers, rectifiers, repeaters, receivers, multiplexers,
126	126	duplexers, transmitters, circuit cards, insulating and
127	127	protective materials and cases, power equipment, backup power
128	128	equipment, diagnostic equipment, storage devices, modems, and
129	129	other general central office or headend equipment, such as
130	130	channel cards, frames, and cabinets, or equipment used in
131	131	successor technologies, including items used to monitor, test,
132	132	maintain, enable, or facilitate qualifying equipment,
133	133	machinery, software, ancillary components, appurtenances,
134	134	accessories, or other infrastructure that is used in whole or
135	135	in part to provide broadband communications services or
136	136	Internet access.
137	137	(3) INTERNET ACCESS. A service that enables users to
138	138	connect to the Internet to access content, information, or
139	139	other services offered over the Internet, including:
140	140	a. The purchase, use, or sale of telecommunications by
141	141	a provider of Internet access to the extent the
142	142	telecommunications are purchased, used, or sold to provide the
143	143	Internet access service or otherwise enable users to access
144	144	content, information, or other services offered over the
145	145	Internet;
146	146	b. Services that are incidental to the provision of
147	147	Internet access when furnished to users as part of the
148	148	Internet access service, such as a homepage, email, and
149	149	instant messaging, to include voice-capable and video-capable
150	150	email and instant messaging, video clips, and personal
151	151	electronic storage capacity;
152	152	c. A homepage, email, and instant messaging, to include
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182	182	c. A homepage, email, and instant messaging, to include
183	183	voice-capable and video-capable email and instant messaging,
184	184	video clips, and personal electronic storage capacity, that
185	185	are provided independently or packaged with Internet access;
186	186	and
187	187	d. Does not include voice, audio, or video programming,
188	188	or other products and services that utilize Internet protocol
189	189	or a successor protocol and for which there is a charge,
190	190	regardless of whether the charge is separately stated or
191	191	aggregated with the charge for services for Internet access.
192	192	(f) The exemption provided in this section shall not
193	193	apply to county or municipal sales or use taxes unless
194	194	approved by resolution or ordinance adopted by the local
195	195	governing body.
196	196	(g) The exemption provided pursuant to this section
197	197	shall be available from September 1, 2025, to August 31, 2028.
198	198	Section 3. This act shall become effective on June 1,
199	199	2025.
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