SB467 Alabama 2015 Session

Summary

Primary Sponsor

Larry StuttsSenator

Republican

Session

Regular Session 2015

Title

Uniform Severance Tax Act, exception for minerals severed in Alabama, sold to buyer in another state, and not transported on public roads in Alabama deleted, Sec. 40-13-53 am'd.

Summary

SB467 would end the severance tax exemption for minerals severed in Alabama that are sold for use outside the state and not transported on Alabama roads, making those minerals taxable.

What This Bill Does

Amends Section 40-13-53 to remove the exemption that currently exempts certain minerals sold for use outside Alabama and not transported on Alabama public roads from the severance tax. As a result, minerals severed in Alabama and sold for use outside the state would be taxed even if they are not moved on Alabama roads. Keeps other existing tax rules and exemptions in place, including record-keeping requirements and audit provisions, and states when the act becomes law.

Who It Affects

• Mineral producers/severers in Alabama: would owe severance tax on minerals sold for use outside the state that are not transported on Alabama public roads.
• Purchasers of Alabama-severed minerals intended for use outside the state: would face tax liability on these out-of-state-use sales under the revised rule.
• County governments: may access records for verification and audit purposes related to minerals purchased for out-of-state use; counties can request information from the Department.
• Sovereign governmental entities (federal and Alabama state entities) are not subject to the tax, as specified in current law.

Key Provisions

• Removes the exemption from the severance tax for minerals severed in Alabama, sold to a purchaser for use outside the state, and not transported on public roads in Alabama.
• Tax remains applicable to severed materials sold as tangible property within the state, regardless of sale location, but the out-of-state-use exemption is eliminated.
• Visible exemptions for certain materials continue under subsection (a), including lime/limestone for specific uses and other listed materials that are not subject to the severance tax.
• Effective date: becomes law on the first day of the third month after passage and governor approval.
• Maintains record-keeping and audit provisions, including records being available to verify compliance and potential sharing with county commissions.

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