AL
Alabama Senate Bill SB282

Alabama 2025 Regular Session

Alabama Senate Bill SB282 Compare Versions

Only one version of the bill is available at this time.
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33 SB282
44 ARG8A7S-1
55 By Senator Barfoot
66 RFD: Finance and Taxation General Fund
77 First Read: 01-Apr-25
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1212 5 ARG8A7S-1 04/01/2025 THR (L)ma 2025-1455
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1414 First Read: 01-Apr-25
1515 SYNOPSIS:
1616 This bill would exempt virtual currency from ad
1717 valorem taxation.
1818 A BILL
1919 TO BE ENTITLED
2020 AN ACT
2121 Relating to virtual currency; to amend Section 40-9-1,
2222 Code of Alabama 1975; to exempt virtual currency from ad
2323 valorem taxation.
2424 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
2525 Section 1. Section 40-9-1, Code of Alabama 1975, is
2626 amended to read as follows:
2727 "§40-9-1
2828 The following property and persons shall be exempt from
2929 ad valorem taxation and none other:
3030 (1) All bonds of the United States and this state and
3131 all county and municipal bonds issued by counties and
3232 municipalities in this state, all property, real and personal,
3333 of the United States and this state and of county and
3434 municipal corporations in this state; all cemeteries, all
3535 property, real and personal, used exclusively for religious
3636 worship, for schools or for purposes purely charitable;
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6666 worship, for schools or for purposes purely charitable;
6767 provided, that property, real or personal, owned by any
6868 educational, religious, or charitable institution, society or
6969 corporation let for rent or hire or for use for business
7070 purposes shall not be exempt from taxation, notwithstanding
7171 that the income from such property shall be used exclusively
7272 for education, religious, or charitable purposes; all
7373 mortgages, together with the notes, debts, and credits secured
7474 thereby on real and personal property situated in this state,
7575 which mortgages have been filed for record and the privilege
7676 tax paid thereon; all security agreements and security
7777 interests under the Uniform Commercial Code, together with the
7878 notes, debts, and credits secured thereby; all money on
7979 deposit in any bank or banking institution and all other
8080 solvent credits; all warrants issued by county boards of
8181 education and city boards of education for the purpose of
8282 erecting, repairing, furnishing school buildings, or for other
8383 school purposes.
8484 (2) All property, real or personal, used exclusively
8585 for hospital purposes, to the amount of seventy-five thousand
8686 dollars ($75,000), where such hospitals maintain wards for
8787 charity patients or give treatment to such patients; provided,
8888 that the treatment of charity patients constitutes at least 15
8989 percent of the business of such hospitals; provided further,
9090 that such hospital need not be assessed for taxation if the
9191 owner or manager shall file with the county tax assessor
9292 wherein such hospital is located within the time allowed for
9393 assessing the property for taxation a certificate that such
9494 hospital has done 15 percent charity work in the preceding tax
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124124 hospital has done 15 percent charity work in the preceding tax
125125 year; and further provided, that such hospital through its
126126 owner or manager shall have until the expiration of the
127127 preceding tax year to class its work and ascertain whether or
128128 not such hospital has done 15 percent of its treatment of
129129 patients as charity work.
130130 (3) The shares of the capital stock of any corporation
131131 owning and operating a hospital, to the extent of seventy-five
132132 thousand dollars ($75,000) in value; provided, that the
133133 corporation maintains wards for charity patients and gives
134134 treatment to such patients, which treatment constitutes at
135135 least 15 percent of the business of the hospital of the
136136 corporation; provided, that the total exemption granted to any
137137 such corporation shall not exceed seventy-five thousand
138138 dollars ($75,000), taking into consideration its real and
139139 personal property and the value of its shares of capital
140140 stock.
141141 (4) All property owned by the American Legion or by
142142 Veterans of Foreign Wars or by the Disabled American Veterans,
143143 or any post thereof; provided, that such property is used and
144144 occupied exclusively by the organization.
145145 (5) All the property of literary and scientific
146146 institutions and literary societies, when employed or used in
147147 the regular business of the institutions.
148148 (6) The libraries of ministers of the gospel, all
149149 libraries other than those of a professional character and all
150150 religious books kept for sale by ministers of the gospel and
151151 colporteurs.
152152 (7) The property of individuals who are deaf, hard of
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182182 (7) The property of individuals who are deaf, hard of
183183 hearing, or insane to the extent of three thousand dollars
184184 ($3,000) and the property of blind individuals to the extent
185185 of twelve thousand dollars ($12,000).
186186 (8) All family portraits.
187187 (9) All cotton, livestock, or agricultural products
188188 that have been raised or grown in the State of Alabama and
189189 remain in the hands of the producer thereof, or his or her
190190 landlord, or in the hands of a cooperative association for all
191191 time, and for a period of one year in the hands of the
192192 purchaser or the manufacturer.
193193 (10) All cotton, wherever grown, stored in licensed
194194 warehouses in the State of Alabama for a period not exceeding
195195 12 months.
196196 (11) Provisions and supplies on hand for the current
197197 year for the use of the family and the making of crops; all
198198 wearing apparel; farming tools; tools and implements of
199199 mechanics to the value of two hundred dollars ($200); all
200200 livestock, including mules, studs, jacks and jennets, cattle,
201201 horses, cows, calves, hogs, sheep, and goats; and household
202202 and kitchen furniture and one sewing machine.
203203 (12) No license or taxation of any character, except
204204 franchise taxes provided by Section 229 of the Constitution of
205205 the State of Alabama, shall be collected or required to be
206206 paid to the state or any county or municipality therein by any
207207 state or county fair, agricultural association, or stock,
208208 kennel, or poultry show. Athletic stadiums owned and
209209 controlled by universities, schools, or colleges and which are
210210 used exclusively for the purpose of promoting intercollegiate
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240240 used exclusively for the purpose of promoting intercollegiate
241241 or interschool athletics; provided, that the revenue received
242242 from athletic stadiums, when admission is charged, shall be
243243 used for the benefit of athletic associations of such
244244 universities, colleges, or schools. Nothing contained in this
245245 subdivision shall be construed to prohibit any municipality,
246246 county, or state from imposing any license tax upon or for the
247247 privilege of engaging in the business of supplying services
248248 for hire or reward or selling commodities other than
249249 livestock, farm products, or farm implements or conducting or
250250 operating devices or games of skill or amusements or other
251251 games or devices, or conducting or operating shows, displays
252252 or exhibits other than shows, displays or exhibits of
253253 agricultural implements, farm products, livestock, and
254254 athletic prowess.
255255 (13) All material, including without limitation coke,
256256 to be compounded or further manufactured, when stocked at any
257257 plant or furnace for manufacturing purposes in Alabama.
258258 (14) All articles manufactured in Alabama, including
259259 pig iron, in the hands of the producer or manufacturer
260260 thereof, for 12 months after its production or manufacture.
261261 (15) All property, both real and personal, owned by any
262262 unit or organization of the Alabama National Guard officially
263263 recognized as such by the federal government and organized and
264264 maintained by the state, and all property owned by shares and
265265 used exclusively by and kept exclusively in the possession of
266266 any such unit or organization of the Alabama National Guard,
267267 the annual rent or hire of which is not in excess of the
268268 annual state, county, and municipal taxes on the property
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298298 annual state, county, and municipal taxes on the property
299299 shall be exempt from taxation by the state, and the county and
300300 municipality in which the same may be situated.
301301 (16) All poultry.
302302 (17) The property of all incompetent veterans to the
303303 value of three thousand dollars ($3,000).
304304 (18) The following items of personal property when
305305 owned by individuals for personal use in the home or usually
306306 kept at the home of the owner and not carried as stocks of
307307 merchandise, namely: Libraries; phonographs; pianos and other
308308 musical instruments; paintings; precious stones, jewelry,
309309 plate silverware, ornaments, and articles of taste; watches
310310 and clocks; wagons, buggies, bicycles, guns, pistols, canes,
311311 golf sticks, golf bags, and sporting goods; money hoarded;
312312 radios; mechanical and electrical refrigerators; electrical
313313 appliances.
314314 (19) All property owned by the Benevolent and
315315 Protective Order of Elks, Fraternal Order of Police, Fraternal
316316 Order of Eagles, or Loyal Order of Moose, or lodge thereof;
317317 provided, that such property is used and occupied exclusively
318318 by such organization.
319319 (20) All devices, facilities, or structures, and all
320320 identifiable components thereof or materials for use therein,
321321 acquired or constructed primarily for the control, reduction,
322322 or elimination of air or water pollution.
323323 (21) Tobacco leaf stored in hogsheads.
324324 (22) All farm tractors, as that term is defined in
325325 Section 32-1-1.1; and all farming implements, as that term is
326326 used in subdivision (b)(5) of Section 40-11-1, when used
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356356 used in subdivision (b)(5) of Section 40-11-1, when used
357357 exclusively in connection with agricultural property as
358358 defined in subdivision (b)(1) of Section 40-8-1.
359359 (23) All grain bins used exclusively for the purpose of
360360 storing, holding, drying, preserving, or otherwise preparing a
361361 grain, as defined in Section 2-31-1, for market. For purposes
362362 of this chapter, "grain bin" means a structure and its
363363 component parts.
364364 (24) All stocks of goods, wares, and merchandise
365365 described in subdivision (b)(4) of Section 40-11-1.
366366 (25) All aircraft, replacement parts, components,
367367 systems, supplies, and sundries affixed or used on the
368368 aircraft, and ground support equipment and vehicles used by or
369369 for the aircraft, when used by a certificated or licensed air
370370 carrier with a hub operation within this state, for use in
371371 conducting intrastate, interstate, or foreign commerce for
372372 transporting people or property by air. For the purpose of
373373 this subdivision, the words "hub operation" within this state
374374 shall be construed to have all of the following criteria:
375375 a. There originates from the location 15 or more flight
376376 departures and five or more different first-stop destinations
377377 five days per week for six or more months during the calendar
378378 year.
379379 b. Passengers or property or both are regularly
380380 exchanged at the location between flights of the same or a
381381 different certificated or licensed air carrier.
382382 (26) All property described in Title 12 U.S.C. § 1701q,
383383 commonly known as HUD 202 property, is hereby exempt from any
384384 and all ad valorem taxes.
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414414 and all ad valorem taxes.
415415 (27) All vessels and equipment thereon, used
416416 predominantly in the business of commercial fishing, as
417417 defined in Section 40-23-1, by the owners thereof.
418418 (28)a. The tangible personal property owned by a
419419 business and reported in accordance with Article 1 of Chapter
420420 7 to the extent of forty thousand dollars ($40,000) in market
421421 value is exempt from the state levied ad valorem tax.
422422 b. Any county or municipality, by resolution or
423423 ordinance, may adopt the exemption provided in paragraph a.
424424 for county or municipal ad valorem taxes levied on tangible
425425 personal property. The ordinance or resolution must be adopted
426426 at least 90 days prior to October 1, 2023, or 90 days prior to
427427 October 1 of the electing year.
428428 (29) Virtual currency, which shall be defined as a
429429 digital representation of value, other than a representation
430430 of the United States dollar or a foreign currency, that
431431 functions as a unit of account, a store of value, or a medium
432432 of exchange."
433433 Section 2. This act shall become effective on October
434434 1, 2025.
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