SB13 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Second Special Session 2015

Title

Motor vehicles, ad valorem taxes, deferral of certain taxes on certain new motor vehicles removed, Motor Vehicle Ad Valorem Tax Fairness Act, Sec. 40-12-253 am'd.

Summary

SB13 eliminates the deferral of ad valorem taxes for certain new motor vehicles and requires taxes to be paid at first renewal with the following year's tax paid in advance.

What This Bill Does

The bill removes the deferral of ad valorem taxes for new motor vehicles that meet Class IV property and are registered with a manufacturer's certificate of origin. Instead, the tax that would have been due at first registration is included in the first renewal, along with the next year's tax paid in advance. It keeps the general collection framework (taxes due in the renewal month and license issuance conditioned on payment) and maintains the tax credit system for demitted vehicles, including processing commissions and distributions to counties and the state. The act takes effect January 1, 2016.

Who It Affects

• Owners and buyers of new motor vehicles that qualify as Class IV property with a manufacturer's certificate of origin, who will now owe the ad valorem tax at first renewal with the next year's tax paid in advance.
• County and city tax officials, along with license-issuing authorities, who administer collection, credits, commissions, and license issuance under the updated schedule.

Key Provisions

• Eliminates the deferral of ad valorem taxes for new motor vehicles that are Class IV property and registered with a manufacturer's certificate of origin.
• First renewal must include the ad valorem tax that would have been due at first registration plus the next year's ad valorem tax paid in advance.
• Taxes continue to be collected on a renewal-month basis; licenses are not issued until taxes are paid; maintains the demitted-vehicle credit system with a $2 processing commission and distribution rules between counties and the State General Fund.
• Establishes rules for credits on demitted vehicles (sales/trades/removal), including timing for credit issuance and refunds, and a 12-month limit to claim credits.
• Effective date: 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

Motor Vehicles