HB448 Alabama 2010 Session

Summary

Primary Sponsor

Spencer Collier

Republican

Session

Regular Session 2010

Title

Watercraft and commercial fishing vessels, certain vessels over five tons, equipment, sales and use tax exemption further provided for, Secs. 40-23-4, 40-23-62 am'd.

Summary

This act clarifies and broadens Alabama's sales/use tax exemptions for watercraft, equipment, and fuel—especially for commercial fishing vessels and vessels over five tons—and sets rules for certificates and penalties.

What This Bill Does

It amends the watercraft exemptions in sections 40-23-4 and 40-23-62 to clarify which watercraft-related purchases are tax-exempt. It expands exemptions for fuel and supplies used aboard vessels engaged in foreign or interstate commerce, including commercial fishing vessels over five tons, and defines what counts as a commercial fishing vessel. It adds a broad list of watercraft equipment and safety gear that are exempt when sold for use on watercraft, and creates a certificate-based process for claiming exemptions with penalties for false certificates. It also covers exemptions for offshore oil/gas exploration activities, state and local entities, and sets an effective date for the changes.

Who It Affects

• Commercial fishing vessels and other watercraft operators (especially vessels over five tons) who would gain exemptions on fuel and supplies used on vessels engaged in foreign, interstate, or Alabama-based commerce.
• Fuel and equipment suppliers, manufacturers, shipyards, dealers, and other merchants who sell watercraft-related goods and services and who must handle exemption certificates and related compliance (including penalties for false certificates).

Key Provisions

• Clarifies watercraft exemptions under 40-23-4 and 40-23-62 to include broader watercraft-related purchases and exemptions.
• Exempts the gross proceeds from sale of fuel and supplies used aboard vessels engaged in foreign or interstate commerce, including commercial fishing vessels over five tons; defines 'commercial fishing vessels' and sets expectations for shipments that count as commerce.
• Creates a certificate-based process for claiming exemptions on fuel and supplies, with penalties for filing false certificates and liability for taxes, interest, and penalties if a false certificate is used.
• Lists extensive watercraft-related equipment and safety items (lifeboats, PFDS, navigation gear, distress signals, pollution-control equipment, and related components) as exempt when sold for use on watercraft.
• Extends exemptions to fuel and supplies used on vessels in offshore oil/gas exploration and related equipment, subject to the same certification framework and commerce definitions.
• Provides exemptions for fuel used aboard commercial fishing vessels from state use tax (and applicable local taxes) and defines 'commercial fishing vessels' accordingly.
• Defines and applies exemptions to certain state and local entities (including educational institutions and school boards) for specified tangible personal property and equipment.
• Effective date: the act becomes law on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation