SB318 Alabama 2010 Session

Summary

Primary Sponsor

Roger Bedford, Jr.

Democrat

Co-Sponsors

Jimmy HolleyHarri Anne Smith

Session

Regular Session 2010

Title

Commercial passenger aircraft with 25 seats or more, parts, components, systems, supplies, and ancillary items used in conversion or refurbishing of, sales and use and property tax exempt, Secs. 40-9-1, 40-23-4, 40-23-62 am'd.

Summary

SB318 would create sales, use, and property tax exemptions in Alabama for parts and supplies used in converting or refurbishing large commercial aircraft (25 seats or more), including during heavy maintenance.

What This Bill Does

It amends sections 40-9-1, 40-23-4, and 40-23-62 to exempt from ad valorem tax, sales/use tax, and storage/use tax certain parts, components, systems, supplies, and ancillary items used in the conversion or refurbishment of commercial passenger aircraft with 25 seats or more. It also provides an exemption for the period during which such aircraft undergo heavy maintenance in Alabama facilities designed for that work, as long as the aircraft originally had 25 or more seats or now has space for 25+ seats. Additionally, it extends exemptions to aircraft, replacement parts, components, systems, and ground support equipment used by certificated or licensed air carriers with hub operations within Alabama for intrastate, interstate, or international commerce, under defined hub-operation criteria.

Who It Affects

• Group 1: Large commercial aircraft operators and maintenance facilities in Alabama (especially hub carriers) who would save on taxes for parts, supplies, and equipment used in converting/refurbishing 25-seat+ aircraft and during heavy maintenance.
• Group 2: Suppliers and sellers of aircraft parts and related equipment, who would may provide exemption certificates to buyers to avoid collecting sales/use taxes on these exempt items.

Key Provisions

• Exemption from ad valorem tax for parts, components, systems, supplies, and ancillary items used in the conversion or refurbishment of commercial aircraft with 25 seats or more.
• Exemption from sales and use taxes for those same converted/refurbished items.
• Exemption from storage/use taxes for those items as specified in the applicable sections.
• Temporary exemption for aircraft undergoing conversion, reconfiguration, refurbishment, or repair in Alabama heavy maintenance facilities, for the period of such work, if the aircraft originally had 25+ seats or currently has space for 25+ seats.
• Exemption coverage for aircraft, replacement parts, components, systems, and ground support equipment used by certificated or licensed air carriers with hub operations in Alabama for intrastate, interstate, or international commerce, subject to defined hub-operation criteria.
• Exemption applies to parts and equipment that become part of the aircraft during conversion or refurbishment, including related sundries and support equipment.

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