HB401 Alabama 2012 Session

Summary

Primary Sponsor

Yvonne Kennedy

Democrat

Co-Sponsors

Napoleon BracyRod ScottMary Sue McClurkinRon JohnsonMicky HammonBarry MaskJim BartonJamie IsonAlan BakerChad FincherJoe HubbardVictor GastonRandy DavisJames E. BuskeyDavid Sessions

Session

Regular Session 2012

Title

Taxation, exemption from sales and use tax for metal sold for investment purposes, Secs. 40-23-4, 40-23-62 am'd (2012-20369)

Summary

HB401 would exempt certain metal held for investment from Alabama sales and use taxes when the metal is transferred to an investment trust in exchange for publicly traded shares or units.

What This Bill Does

It amends sales and use tax exemptions to cover metal (non-gold/silver) bought for investment that is transferred to an investment trust in exchange for publicly traded shares or units representing the trust’s net assets, including metal stored in Alabama warehouses. The exemption applies to both the sale and transfer of such metal to or from the investment trust, but only when the exchange is for publicly traded shares or units, not for other forms of payment. It also adds an exemption from use tax for metal held by an investment trust and for metal stored in Alabama warehouses, and clarifies the metals covered. The act becomes effective on the first day of the third month after passage, and is described as signed into law in 2012.

Who It Affects

• Investment trusts that hold metal and investors who own shares or units in those trusts, particularly where metal is stored in Alabama warehouses, would be exempt from sales and use tax on qualifying transactions.
• Metal producers, wholesalers, brokers, and other sellers or transferors who sell or transfer metal to investment trusts in exchange for publicly traded shares or units would benefit from the tax exemption on those transactions.

Key Provisions

• Adds a sales tax exemption for the gross proceeds from the sale or transfer of non-gold/silver metal purchased for investment when the metal is transferred to an investment trust in exchange for publicly traded shares or units representing the trust’s net assets, including metal stored in Alabama warehouses; exemption also covers the sale or transfer of such metal to or from the investment trust.
• Defines the term metals to include copper, aluminum, nickel, zinc, tin, lead, and similar metals, and excludes gold and silver from the exemption.
• Adds a use tax exemption for metal held by an investment trust and for metal stored in Alabama warehouses under Section 40-23-62, expanding exemptions beyond the sales tax changes.
• Effective date: the first day of the third month after passage (July 1, 2012 in this case).

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

Subjects

Sales and Use Tax