HB170 Alabama 2010 Session

Summary

Primary Sponsor

Spencer Collier

Republican

Session

Regular Session 2010

Title

Watercraft, sales and use tax, tax exemption clarified for items required by U. S. Coast Guard in the operation of, Sec. 40-23-62 am'd.

Summary

The bill clarifies and broadens Alabama's sales and use tax exemption for watercraft and related supplies, aligning the law with Coast Guard requirements.

What This Bill Does

It amends Section 40-23-62 to explicitly exempt watercraft-related property from state sales/use tax. It covers fuels, lubricants, equipment, and supplies used in the operation and maintenance of watercraft that are registered with the U.S. Coast Guard and licensed by Alabama. It provides special exemptions for fuel used aboard commercial fishing vessels over five tons and for vessels engaged in foreign or interstate commerce under specific conditions (including tonnage and Coast Guard certification). It also clarifies exemptions for materials required by the Coast Guard to operate watercraft and for vessels meeting the defined commerce criteria.

Who It Affects

• Watercraft owners and operators in Alabama, who would pay less or no state sales/use tax on fuel, parts, equipment, and supplies used for operating and maintaining their vessels.
• Vendors and suppliers of watercraft fuels, lubricants, parts, and equipment, who would be eligible for tax-exemption transactions when sold for exempt watercraft.
• Commercial fishing vessel operators (masters/owners) of vessels over five tons, who would have fuel and related supplies exempt from state use tax.
• Vessels engaged in foreign or interstate commerce that meet the specified criteria (tonnage and Coast Guard certificate), whose fuel and supplies may be exempt.

Key Provisions

• Amendment to Section 40-23-62 to clearly exempt watercraft and related items from the state sales/use tax.
• Explicit exemption for fuels, lubricants, equipment, and supplies used in the operation or maintenance of watercraft registered with the U.S. Coast Guard and licensed by the Alabama Department of Conservation and Natural Resources.
• Specific exemption for fuel used aboard commercial fishing vessels over five tons, with definitions of who qualifies as a commercial fishing vessel.
• Conditions for vessels engaged in foreign or interstate commerce (e.g., minimum tonnage and valid Coast Guard or recognized foreign certificate) that support tax-exempt fuel and supplies for those vessels.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation