HB540 Alabama 2011 Session

Summary

Primary Sponsor

Pebblin W. WarrenRepresentative

Democrat

Co-Sponsors

Lesley VanceDuwayne BridgesGeorge “Tootie” BandyMark Tuggle

Session

Regular Session 2011

Title

Lee Co., sales and use tax, county commission authorized to levy outside corporate limits of Auburn, Opelika, and Phenix City, Act 1254, 1969 Sp. Sess.; Act 89-629, 1989 Reg. Sess. am'd.

Summary

HB540 lets Lee County impose local sales and use taxes outside the cities of Auburn, Opelika, and Phenix City, paralleling state taxes, at up to a 1% rate.

What This Bill Does

If passed, the Lee County Commission would be authorized to levy and collect sales and use taxes outside the three cities, generally mirroring the state tax structure. The bill specifies several tax bases and rates, including 1% on gross receipts from most retail sales of tangible property, 1% on receipts from places of amusement, 3/8 of 1% on sales of machinery used in mining or manufacturing, and 3/8 of 1% on sales of motor vehicles and trailers, plus a 1% excise on storage or use of property. It also includes a $1.25 annual fee if a business withdraws stock (like vehicles) for its own use and outlines certain exemptions, such as specific vending machine sales under defined conditions. The overall goal is to create a county-wide tax program that generally parallels state taxes, effective immediately after gubernatorial approval.

Who It Affects

• Businesses operating in Lee County outside the corporate limits of Auburn, Opelika, and Phenix City, who would owe local sales and use taxes based on their activity (retail sales, machines, vehicles, amusements, etc.).
• Residents and visitors in that part of Lee County, who would pay these taxes on purchases, admissions, and other taxable activities.

Key Provisions

• Authorizes the Lee County Commission to levy and collect local sales and use taxes outside the three cities, paralleling the state tax, with a rate not to exceed 1%.
• Tax bases and rates defined for outside-city areas: (a) 1% of gross proceeds on most retail sales of tangible property; (b) 1% of gross receipts from places of amusement and entertainment; (c) 3/8 of 1% of gross receipts from sales of machinery used in mining/processing/manufacturing; (d) 3/8 of 1% of gross proceeds from sales of motor vehicles and trailers.
• A special provision in (d): a $1.25 annual fee applies if a vehicle or trailer is withdrawn from stock for personal use, with the fee period starting on withdrawal and running for 12 months (or part thereof).
• An excise tax structure outside city limits: (a) 1% on storage/use of tangible property purchased at retail; (b) 3/8 of 1% on storage/use of machinery; (c) 3/8 of 1% on storage/use of motor vehicles and trailers, with net differences for trades in.
• Exemptions and clarifications: certain items like bonds are not taxed; special exemptions for vending-machine sales of very inexpensive items under defined conditions if sworn statements and records are kept.
• Section 2 confirms the authority to levy outside-city taxes and to parallel the state tax, with rate guidance. Section 3 makes the act effective immediately upon governor 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

Lee County