HB142 Alabama 2012 Session

Summary

Primary Sponsor

Terri CollinsRepresentative

Republican

Session

Regular Session 2012

Title

Taxation, tax exemption for Class 1-5 municipalities cultural districts

Summary

HB142 would exempt the sale of original works of art in cultural districts from state sales tax in certain Alabama municipalities.

What This Bill Does

It creates a sales tax exemption for the sale of original works of art within cultural districts in Class 1-5 municipalities (and municipalities with an incorporated arts council or main street program). The exemption applies to the state sales tax, but county sales tax would only be exempt if the county commission approves it. The Alabama State Council on the Arts would develop standard criteria for establishing cultural districts, including that districts be geographically contiguous and rich in cultural resources. The bill covers a wide range of original art forms (books, plays, music, paintings, sculpture, crafts, films, and dance) as long as they are original and not mass-produced, and the exemption takes effect in the fiscal year starting October 1, 2012.

Who It Affects

• Artists, galleries, and other sellers of original works of art within cultural districts in Class 1-5 municipalities (they could benefit from not having to charge state sales tax on qualifying items).
• Consumers purchasing original works of art within those cultural districts (they would pay no state sales tax on qualifying purchases).
• County governments, since county sales tax would only be exempt if the county commission approves; otherwise county tax may apply.
• The Alabama State Council on the Arts, which would establish criteria for what qualifies as a cultural district.

Key Provisions

• Creates a state sales tax exemption for the sale of original works of art in cultural districts located in Class 1-5 municipalities (and municipalities with an incorporated arts council or main street program).
• Exemption applies to state sales tax under Chapter 23 of Title 40, but county sales tax exemption requires approval by the county commission; without approval, county tax may still apply.
• Defines cultural district and works of art, and allows the Alabama State Council on the Arts to develop standard criteria for establishing the district (districts must be geographically contiguous and distinguished by local cultural resources).
• Defines works of art as original, one-of-a-kind productions by artists in the district, including books, plays, music, paintings, sculpture, crafts, films, and dances, excluding mass-produced performances or industry-focused works.
• Effective for the fiscal year beginning October 1, 2012.
• The act is severable and replaces conflicting laws as applicable.

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

Subjects

Taxation