SB213INTRODUCED
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SB213
9N3KBMP-1
By Senators Williams, Jones, Carnley, Sessions, Chesteen,
Bell, Price, Melson, Livingston, Beasley, Shelnutt, Roberts,
Kitchens, Kelley
RFD: Finance and Taxation Education
First Read: 04-Mar-25
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7 9N3KBMP-1 01/29/2025 MF (F)MF 2025-397
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First Read: 04-Mar-25
SYNOPSIS:
Under existing law, a utility gross receipts tax
is levied on utility services, and a utility service
use tax is levied on the storage, use, or other
consumption of electricity, domestic water, natural
gas, telegraph, and telephone in the state.
This bill would exclude the use or purchase of
natural gas or electricity for use or consumption in
poultry houses from the utility gross receipts tax and
utility service use tax.
A BILL
TO BE ENTITLED
AN ACT
Relating to the utility gross receipts tax and utility
service use tax; to amend Sections 40-21-83 and 40-21-103,
Code of Alabama 1975, to exclude the use of natural gas or
electricity in poultry houses from the taxes.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 40-21-83 and 40-21-103 of the Code
of Alabama 1975, are amended to read as follows:
"§40-21-83
There are specifically excluded from the gross receipts
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There are specifically excluded from the gross receipts
or gross sales of a utility, all revenues derived from any of
the following:
(1) The furnishing of utility services which the State
of Alabama is prohibited from taxing under the Constitution or
laws of the United States of America or the Constitution of
the State of Alabama of 2022.
(2) The furnishing of utility services which are
otherwise taxed under Sections 40-23-1 to 40-23-36, inclusive.
(3) Wholesale sales.
(4) The furnishing of electricity, natural gas, or
domestic water for use or consumption by, in, or for the
direct production, generation, processing, storage, delivery,
or transmission of electricity, natural gas, or domestic
water.
(5) The furnishing of electricity to a manufacturer or
compounder for use in an electrolytic or electrothermal
manufacturing or compounding process.
(6) The furnishing of natural gas to a manufacturer or
compounder as a chemical raw material in the manufacturing or
compounding of tangible personal property, but not as fuel or
energy.
(7) The furnishing of natural gas to be used by a
manufacturer or compounder to chemically convert raw materials
prior to the use of the converted raw materials in an
electrolytic or electrothermal manufacturing or compounding
process.
(8) The use or consumption of electricity by an
incorporated municipality, a board, or corporation organized
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incorporated municipality, a board, or corporation organized
under the authority of any incorporated municipality in
furnishing or providing street lighting or traffic-control
systems; the use or consumption of telephone services by an
incorporated municipality in providing fire alarm systems; and
the use or consumption of domestic water by an incorporated
municipality in extinguishing fires, explosions, or
conflagrations.
(9) The furnishing of natural gas or electricity for
use or consumption as fuel or energy in and for the heating of
poultry houses.
(10) The furnishing of utility services through the use
of a prepaid telephone calling card."
"§40-21-103
The storage, use, or other consumption of utility
services in the State of Alabama is hereby specifically
excluded from the tax herein levied:
(1) Whenever the State of Alabama is prohibited from
taxing such storage, use, or consumption under the
Constitution or laws of the United States of America or the
Constitution of the State of Alabama of 2022;
(2) Whenever any tax relating to the sale, use,
storage, or consumption of said utility services shall be
levied under the provisions of Article 2 of Chapter 23 of this
title, or under the provisions of Sections 40-23-1 through
40-23-36 or the Alabama Transaction Tax Act of 1992 if enacted
into law;
(3) Whenever the purchase of said utility services
shall have been at a wholesale sale;
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shall have been at a wholesale sale;
(4) Whenever electricity, natural gas, or domestic
water shall have been used or consumed directly in or for the
production, generation, processing, storage, delivery, or
transmission of electricity, natural gas, or domestic water;
(5) Whenever electricity purchased for storage, use, or
other consumption is used or consumed by a manufacturer or
compounder in an electrolytic or electrothermal manufacturing
or compounding process;
(6) Whenever natural gas purchased for storage, use, or
other consumption is used or consumed by a manufacturer or
compounder as a chemical raw material in the manufacturing or
compounding of tangible personal property, but not as fuel or
energy;
(7) Whenever natural gas purchased for storage, use, or
other consumption is used by a manufacturer or compounder to
chemically convert raw materials prior to the use of such
converted raw materials in an electrolytic or electrothermal
manufacturing or compounding process;
(8) Whenever the sales price of said utility services
shall be included as a part of the gross receipts or gross
sales of a utility subject to the utility gross receipts tax
for the purpose of calculating the utility gross receipts tax
payable by said utility;
(9) Whenever electricity purchased for storage, use, or
other consumption is used or consumed in a process for the
isotopic enrichment of uranium and when said electricity is
purchased from a subsidiary corporation of the corporation
engaged in the isotopic enrichment of uranium; and
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engaged in the isotopic enrichment of uranium; and
(10) Whenever utility services are furnished through
the use of a prepaid telephone calling card ; and
(11) Whenever natural gas or electricity purchased for
storage, use, or other consumption is used or consumed as fuel
or energy in poultry houses ."
Section 2. This act shall become effective on
September 1, 2025.
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