HB26 Alabama 2015 Session

Summary

Primary Sponsor

Ron Johnson

Republican

Session

Regular Session 2015

Title

Sales tax, automotive batteries, sales tax to be due on the net price less any exchanges, Sec. 40-23-2 am'd.

Description

Under existing law, when a used automotive part or vehicle is taken as a credit on a new or rebuilt part or a vehicle, sales tax is due on the net difference in price, or when the used automotive part or core is later returned, the purchaser is generally refunded the value of the returned used part or core plus any sales tax originally paid. However, by exception in the law, when a used automotive battery is taken as a credit on a new battery, this provision does not apply and sales tax is due on the full purchase price of the new battery without regard to any credit for the return of the old battery.

This bill would delete the above exception on the trade-in of a used automotive battery for a new battery. The sales tax due would be based on the net price of a new automotive battery less any credit for return of the old battery.

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Subjects

Taxation