HB216 Alabama 2013 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Co-Sponsors

Jamie IsonBarry MooreDonnie ChesteenSteve McMillanDavid SessionsJames E. BuskeyVictor GastonBecky NordgrenEd HenryMary Sue McClurkinTerri CollinsChad Fincher

Session

Regular Session 2013

Title

Sales and use tax, aircraft parts used to refurbish cargo aircraft, use tax exemption further provided for, local government approval of local taxes, Sec. 40-23-62 am'd

Summary

HB216 creates a retroactive use tax exemption for aircraft parts used in refurbishing certain aircraft when the plane is registered outside Alabama, aligning use tax with a sales tax exemption.

What This Bill Does

The bill clarifies that a use tax exemption mirrors the existing sales tax exemption and applies to parts, components, and systems added to fixed or rotary wing military aircraft or certified transport category aircraft undergoing conversion or maintenance, so long as the FAA registration address is not in Alabama. It establishes retroactive effect to October 1, 2012 and sets a defined exemption period with possible extension by joint resolution. It also limits the exemption from local use taxes unless local law or a local government resolution allows it, aiming for uniform administration of sales and use tax.

Who It Affects

• Aircraft owners, operators, and maintenance providers dealing with parts for aircraft registered outside Alabama, who could qualify for the use tax exemption when refurbishing or converting aircraft.
• Local governments and local tax authorities, who would restrict or permit the exemption for local use taxes depending on local law or approved resolutions.

Key Provisions

• An equivalent use tax exemption for parts, components, and systems that become part of a fixed or rotary wing military aircraft or certified transport category aircraft undergoing conversion, reconfiguration, or general maintenance, provided the aircraft's FAA registration address is not in Alabama.
• Retroactive effective date to fiscal year starting October 1, 2012, aligning use tax exemptions with the sales tax exemption in Act 2012-185 and providing for uniform administration of sales and use taxes.
• The exemption does not apply to local use taxes unless previously exempted by local law or approved by a local governing body resolution.
• Exemption period specified as October 1, 2012 through May 30, 2022, unless extended by joint resolution.

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