HB444 Alabama 2011 Session

Summary

Primary Sponsor

Victor Gaston

Republican

Co-Sponsors

Jamie IsonJim Barton

Session

Regular Session 2011

Title

Commercial passenger aircraft with 50 seats or more, parts, components, systems, supplies, and ancillary items used in conversion or refurbishing of, sales tax exempt, Sec. 40-23-4 am'd.; Act 2010-514, 2010 Reg. Sess. am'd.

Summary

HB444 would make Alabama state sales tax exempt for parts and supplies used to convert or refurbish large commercial aircraft (50 seats or more).

What This Bill Does

The bill amends Section 40-23-4 to exempt gross proceeds from the sale of parts, components, systems, supplies, and ancillary items used in the conversion or refurbishing of commercial passenger aircraft with a seating capacity of 50 or more. This exemption applies to the state sales tax and would reduce or remove the tax collected on those transactions. The exemption does not apply to local sales taxes unless a local law or resolution provides an exemption. The act becomes effective immediately after it is passed and approved by the Governor.

Who It Affects

• Aircraft conversion/refurbishment businesses in Alabama that perform conversions on 50-seat+ aircraft would pay no Alabama state sales tax on qualifying parts and supplies, lowering their costs.
• Sellers/distributors of aircraft parts and supplies used in those conversions would not collect Alabama state sales tax on exempt transactions and would need to adjust tax collection accordingly.

Key Provisions

• Amends Section 40-23-4 to exempt gross receipts from the sale of parts, components, and systems used in the conversion or refurbishing of commercial aircraft with a seating capacity of 50 seats or more.
• Exemption applies to the state sales tax but shall not apply to local sales taxes unless exempted by local law or by resolution of the local governing body.
• Effective immediately upon passage and governor's approval.

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

Subjects

Aircraft