HB52 Alabama 2014 Session

Summary

Primary Sponsor

Terri CollinsRepresentative

Republican

Session

Regular Session 2014

Title

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

Summary

HB52 would create a state sales tax exemption for the sale of original works of art in cultural districts in certain Alabama municipalities, with a $10,000 per item cap.

What This Bill Does

HB52 creates a state sales tax exemption for the sale of original works of art sold in designated cultural districts within Class 1-5 municipalities or municipalities with an incorporated arts council or main street program, for items priced at $10,000 or less. The Alabama State Council on the Arts must develop criteria for establishing cultural districts, and districts must be geographically contiguous and include cultural resources vital to the community. The exemption applies to state sales and use taxes on qualifying sales, but local county or municipal taxes require approval by the local governing body. Local districts must report annually to the Department of Revenue and the Department of Tourism, and the Department of Revenue may issue rules to implement the act.

Who It Affects

• Artists, galleries, and other sellers of original works of art in designated cultural districts who sell items at or below $10,000, who would be exempt from state sales tax on those qualifying sales.
• Municipal governments in Class 1-5 areas (or municipalities with an incorporated arts council or main street program) that certify cultural districts and determine local tax exemptions, with annual reporting requirements.

Key Provisions

• Specific provision 1: Establishes a state sales tax exemption for the sale of original works of art in cultural districts within eligible municipalities, capped at $10,000 per item.
• Specific provision 2: Defines cultural district and original work of art, and requires the Alabama State Council on the Arts to develop criteria for establishing districts that are geographically contiguous and culturally significant.
• Specific provision 3: Exemption applies to state sales and use taxes; local county or municipal taxes require approval by the local governing body and may not automatically apply.
• Specific provision 4: Requires annual reporting by local districts to the Department of Revenue and Department of Tourism; authorizes the Department of Revenue to issue implementing rules; sets the effective date and includes severability.

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