HB369 Alabama 2010 Session

Summary

Primary Sponsor

Spencer Collier

Republican

Session

Regular Session 2010

Title

Commercial fishing vessels, purchase of certain equipment, exemption from sales and use taxation, form

Summary

HB369 creates a formal exemption certificate for purchases of equipment for Alabama commercial fishing vessels over five tons that are registered with the U.S. Coast Guard and licensed by the Alabama Department of Conservation and Natural Resources, allowing sellers to forgo collecting sales tax when the certificate is properly used.

What This Bill Does

It establishes a specific exemption form that purchasers use at retail to certify that equipment bought will become part of eligible commercial fishing vessels and thus is exempt from sales tax. The exemption applies if the vessels meet the size criteria and are registered with the U.S. Coast Guard and licensed by Alabama's Department of Conservation and Natural Resources. The seller is relieved from collecting tax if the certificate is valid and used as described, while the purchaser bears responsibility for tax if the use fails to meet the claim; the seller must provide a copy of the certificate to the purchaser and keep the original for Department of Revenue review for at least one year.

Who It Affects

• Commercial fishing vessel operators/owners who buy equipment for vessels that meet the eligibility criteria, as they may pay no sales tax on those purchases when using the exemption certificate.
• Retailers/sellers of fishing equipment who must accept the exemption certificate, avoid collecting sales tax for qualifying purchases, and retain records (original certificate) for at least one year for tax authority review.

Key Provisions

• Creates an exemption certificate for purchases of material, equipment, or machinery that will become part of commercial fishing vessels over five tons load displacement, as registered with the U.S. Coast Guard and licensed by the Alabama Department of Conservation and Natural Resources, which exempts the sale from sales tax when properly used as described.
• Requires the seller to provide a copy of the certificate to the purchaser, retain the original certificate for at least one year for examination by the Department of Revenue, and requires the purchaser to certify usage and acknowledge liability for any tax if the items are not used as stated; sets the effective date as the first day of the third month after passage.

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