HB414 Alabama 2014 Session

Summary

Primary Sponsor

Mike Ball

Republican

Session

Regular Session 2014

Title

Taxation, exempt certain advertisers from use tax, Sec. 40-23-62.1 added

Summary

HB414 would exempt advertising agencies from use tax on printed materials bought from out-of-state printers if the agency does not provide a recipient list.

What This Bill Does

The bill creates a new exemption (Section 40-23-62.1) stating that the storage, use, or consumption in Alabama of printed materials bought by an advertising agency from an out-of-state printer is not subject to use tax, provided the agency does not furnish names of recipients to the printer. It applies retroactively to open tax periods, but no refunds will be issued for periods before the act’s effective date. The act becomes law on the first day of the third month after passage and approval.

Who It Affects

• Advertising agencies in Alabama that purchase printed materials from out-of-state printers and do not provide a recipient list to the printer will be exempt from use tax on those materials.
• State tax authorities and enforcement officials who must apply the exemption retroactively and manage any retroactive tax considerations, including denying refunds for periods before the act’s effective date.

Key Provisions

• Adds Section 40-23-62.1 to provide an exemption from use tax for out-of-state printed materials purchased by an advertising agency, if the agency does not furnish a list of recipient names to the printer.
• Exemption covers storage, use, or consumption in Alabama of the materials.
• Retroactive application to open tax periods and periods where tax assessments could be made, with no refunds for periods prior to the effective date.
• Effective date: first day of the third month after the act's passage and approval.
• Severability clause and a statement that the act clarifies existing law.

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