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, not to include a highway, road, or bridge project, for a governmental entity which is exempt from the payment of sales and use taxes. The bill would provide for the accounting for purchases and for enforcement for violations.
Forwarded to Governor at 2:33 p.m. on May 9, 2012.
Assigned Act No. 2013-205.
Clerk of the House Certification
Signature Requested
Concurred in Second House Amendment
Enrolled
DeMarco motion to Concur In and Adopt adopted Roll Call 1183
Concurrence Requested
Motion to Read a Third Time and Pass adopted Roll Call 910
Blackwell motion to Adopt adopted Roll Call 909
Finance and Taxation Education Amendment Offered
Third Reading Passed
Read for the second time and placed on the calendar 1 amendment
Read for the first time and referred to the Senate committee on Finance and Taxation Education
Engrossed
Motion to Read a Third Time and Pass adopted Roll Call 355
Motion to Adopt adopted Roll Call 354
Ways and Means Education first Substitute Offered
Third Reading Passed
Read for the second time and placed on the calendar with 1 substitute and
Read for the first time and referred to the House of Representatives committee on Ways and Means Education
Source: Alabama Legislature