SB24 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

First Special Session 2015

Title

Taxation, sales and lodging, certificate of exemption required, report to Revenue Department required

Summary

SB24 would require most non-governmental exemptions from Alabama sales, use, and lodgings taxes to obtain an annual exemption certificate and file information reports with the Department of Revenue, with penalties for misuse or noncompliance.

What This Bill Does

If enacted, non-governmental entities that are exempt from Alabama sales, use, and lodgings taxes must obtain a certificate of exemption each year from the Department of Revenue and renew it annually. They would also need to file information reports about exempt transactions. Violations could lead to penalties and loss of exemption for certain periods, and the Department would adopt rules to implement these changes; the act takes effect January 1, 2016.

Who It Affects

• Non-governmental entities exempt from Alabama sales, use, and lodgings taxes (e.g., private companies, nonprofits) would need to obtain an annual exemption certificate and file information reports about exempt transactions.
• Governmental entities (federal and state governments, public schools and universities, healthcare authorities, counties, and municipalities) are exempt from these requirements and are not subject to the certificate or reporting obligations.

Key Provisions

• All non-governmental exempt entities must annually obtain a certificate of exemption from the Department of Revenue; the certificate is valid for one year and must be renewed each year; failing to obtain or renew the certificate prevents tax-exempt purchases or tax-exempt lodging.
• Governmental entities are exempt from the certificate and reporting requirements.
• Certificates of exemption include penalties for misuse; a civil penalty of at least $2,000 or 2 times the tax due (whichever is greater) can apply, and misuse may bar the entity from using any exemption certificate for up to two years.
• Entities exempt from taxes must file information reports about exempt transactions with the Department of Revenue; noncompliance can result in bars from exemption (six months for first offense, one year for second; third offense requires legislative approval to continue).
• The Department of Revenue may adopt rules to administer the act and may require annual exemption certificates for entities not covered by subsection (a) and annual information reports, with penalties similar to those for noncompliance; the act becomes effective January 1, 2016.

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