SB200 Alabama 2011 Session

Summary

Primary Sponsor

Bill Holtzclaw

Republican

Session

Regular Session 2011

Title

Sales and use tax, governmental entities that are tax exempt, construction projects, certain contractors and subcontractors to be granted certificates of exemption by Revenue Department to purchase materials

Description

Under existing law, the State of Alabama, a county, or a municipality, a local board of education, a state or local industrial development board or authority and other governmental entities and political subdivisions of these entities are generally exempt from the payment of sales and use taxes on the purchase of building materials and construction materials to be included in construction projects of the governmental entity.

Under existing law, the governmental entity is required to actually purchase, store, and pay for construction materials to be used in a construction project of the governmental entity in order for the governmental entity to recognize the cost savings on the tax exempt purchases. Under existing law, a governmental entity normally requires bidders for government construction projects to include the costs of purchases as tax exempt purchases in bids submitted on a project.

This bill would provide for the Department of Revenue to grant certificates of exemption from sales and use taxes to contractors and subcontractors licensed by the State Licensing Board for General Contractors for the purchase of building materials and construction materials to be used in the construction of a building or other project for a governmental entity which is exempt from the payment of sales and use taxes. The bill would provide for the accounting of purchases and for the enforcement of this bill.

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Subjects

Taxation