Alabama 2025 Regular Session

Alabama Senate Bill SB213 Compare Versions

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

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1	1	SB213INTRODUCED
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3	3	SB213
4	4	9N3KBMP-1
5	5	By Senators Williams, Jones, Carnley, Sessions, Chesteen,
6	6	Bell, Price, Melson, Livingston, Beasley, Shelnutt, Roberts,
7	7	Kitchens, Kelley
8	8	RFD: Finance and Taxation Education
9	9	First Read: 04-Mar-25
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16	16	7 9N3KBMP-1 01/29/2025 MF (F)MF 2025-397
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18	18	First Read: 04-Mar-25
19	19	SYNOPSIS:
20	20	Under existing law, a utility gross receipts tax
21	21	is levied on utility services, and a utility service
22	22	use tax is levied on the storage, use, or other
23	23	consumption of electricity, domestic water, natural
24	24	gas, telegraph, and telephone in the state.
25	25	This bill would exclude the use or purchase of
26	26	natural gas or electricity for use or consumption in
27	27	poultry houses from the utility gross receipts tax and
28	28	utility service use tax.
29	29	A BILL
30	30	TO BE ENTITLED
31	31	AN ACT
32	32	Relating to the utility gross receipts tax and utility
33	33	service use tax; to amend Sections 40-21-83 and 40-21-103,
34	34	Code of Alabama 1975, to exclude the use of natural gas or
35	35	electricity in poultry houses from the taxes.
36	36	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
37	37	Section 1. Sections 40-21-83 and 40-21-103 of the Code
38	38	of Alabama 1975, are amended to read as follows:
39	39	"§40-21-83
40	40	There are specifically excluded from the gross receipts
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70	70	There are specifically excluded from the gross receipts
71	71	or gross sales of a utility, all revenues derived from any of
72	72	the following:
73	73	(1) The furnishing of utility services which the State
74	74	of Alabama is prohibited from taxing under the Constitution or
75	75	laws of the United States of America or the Constitution of
76	76	the State of Alabama of 2022.
77	77	(2) The furnishing of utility services which are
78	78	otherwise taxed under Sections 40-23-1 to 40-23-36, inclusive.
79	79	(3) Wholesale sales.
80	80	(4) The furnishing of electricity, natural gas, or
81	81	domestic water for use or consumption by, in, or for the
82	82	direct production, generation, processing, storage, delivery,
83	83	or transmission of electricity, natural gas, or domestic
84	84	water.
85	85	(5) The furnishing of electricity to a manufacturer or
86	86	compounder for use in an electrolytic or electrothermal
87	87	manufacturing or compounding process.
88	88	(6) The furnishing of natural gas to a manufacturer or
89	89	compounder as a chemical raw material in the manufacturing or
90	90	compounding of tangible personal property, but not as fuel or
91	91	energy.
92	92	(7) The furnishing of natural gas to be used by a
93	93	manufacturer or compounder to chemically convert raw materials
94	94	prior to the use of the converted raw materials in an
95	95	electrolytic or electrothermal manufacturing or compounding
96	96	process.
97	97	(8) The use or consumption of electricity by an
98	98	incorporated municipality, a board, or corporation organized
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128	128	incorporated municipality, a board, or corporation organized
129	129	under the authority of any incorporated municipality in
130	130	furnishing or providing street lighting or traffic-control
131	131	systems; the use or consumption of telephone services by an
132	132	incorporated municipality in providing fire alarm systems; and
133	133	the use or consumption of domestic water by an incorporated
134	134	municipality in extinguishing fires, explosions, or
135	135	conflagrations.
136	136	(9) The furnishing of natural gas or electricity for
137	137	use or consumption as fuel or energy in and for the heating of
138	138	poultry houses.
139	139	(10) The furnishing of utility services through the use
140	140	of a prepaid telephone calling card."
141	141	"§40-21-103
142	142	The storage, use, or other consumption of utility
143	143	services in the State of Alabama is hereby specifically
144	144	excluded from the tax herein levied:
145	145	(1) Whenever the State of Alabama is prohibited from
146	146	taxing such storage, use, or consumption under the
147	147	Constitution or laws of the United States of America or the
148	148	Constitution of the State of Alabama of 2022;
149	149	(2) Whenever any tax relating to the sale, use,
150	150	storage, or consumption of said utility services shall be
151	151	levied under the provisions of Article 2 of Chapter 23 of this
152	152	title, or under the provisions of Sections 40-23-1 through
153	153	40-23-36 or the Alabama Transaction Tax Act of 1992 if enacted
154	154	into law;
155	155	(3) Whenever the purchase of said utility services
156	156	shall have been at a wholesale sale;
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186	186	shall have been at a wholesale sale;
187	187	(4) Whenever electricity, natural gas, or domestic
188	188	water shall have been used or consumed directly in or for the
189	189	production, generation, processing, storage, delivery, or
190	190	transmission of electricity, natural gas, or domestic water;
191	191	(5) Whenever electricity purchased for storage, use, or
192	192	other consumption is used or consumed by a manufacturer or
193	193	compounder in an electrolytic or electrothermal manufacturing
194	194	or compounding process;
195	195	(6) Whenever natural gas purchased for storage, use, or
196	196	other consumption is used or consumed by a manufacturer or
197	197	compounder as a chemical raw material in the manufacturing or
198	198	compounding of tangible personal property, but not as fuel or
199	199	energy;
200	200	(7) Whenever natural gas purchased for storage, use, or
201	201	other consumption is used by a manufacturer or compounder to
202	202	chemically convert raw materials prior to the use of such
203	203	converted raw materials in an electrolytic or electrothermal
204	204	manufacturing or compounding process;
205	205	(8) Whenever the sales price of said utility services
206	206	shall be included as a part of the gross receipts or gross
207	207	sales of a utility subject to the utility gross receipts tax
208	208	for the purpose of calculating the utility gross receipts tax
209	209	payable by said utility;
210	210	(9) Whenever electricity purchased for storage, use, or
211	211	other consumption is used or consumed in a process for the
212	212	isotopic enrichment of uranium and when said electricity is
213	213	purchased from a subsidiary corporation of the corporation
214	214	engaged in the isotopic enrichment of uranium; and
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244	244	engaged in the isotopic enrichment of uranium; and
245	245	(10) Whenever utility services are furnished through
246	246	the use of a prepaid telephone calling card ; and
247	247	(11) Whenever natural gas or electricity purchased for
248	248	storage, use, or other consumption is used or consumed as fuel
249	249	or energy in poultry houses ."
250	250	Section 2. This act shall become effective on
251	251	September 1, 2025.
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