SB213 Alabama 2016 Session

Summary

Primary Sponsor

Clay Scofield

Republican

Session

Regular Session 2016

Title

Broadband telecommunications network facility, sales and use tax exemption provided for, equipment or materials used by any such facility, Secs. 40-23-1, 40-23-4, 40-23-62 am'd.

Summary

The bill would create a sales and use tax exemption in Alabama for equipment and materials used to build and operate qualifying broadband telecommunications network facilities.

What This Bill Does

It defines what qualifies as a broadband telecommunications network facility, requiring transmission speeds of at least 10 Mbps download and 1 Mbps upload. It amends the sales tax law to exempt the gross proceeds from the sale of equipment or materials that are incorporated into or used to operate such facilities. It also amends the use tax law to exempt the storage, use, or consumption of these same items in Alabama. The act would take effect immediately after passage and approval by the governor.

Who It Affects

• Private broadband providers and investors, who would pay less sales/use tax on equipment and materials for broadband facilities.
• Equipment manufacturers and suppliers, who would see tax exemptions applied to qualifying broadband-related sales in Alabama.
• Contractors and builders involved in broadband projects, who would benefit from tax-exempt purchases of necessary equipment and materials.
• State and local revenue streams and the Department of Revenue, which would see changes in tax collections related to these exemptions.

Key Provisions

• Section 40-23-1 defines Broadband Telecommunications Network Facility as equipment or property used directly or indirectly to transmit broadband signals at speeds of at least 10 Mbps download and 1 Mbps upload.
• Section 40-23-4 is amended to exempt from sales tax the gross proceeds from the sale of equipment or materials incorporated into or used to operate qualifying broadband facilities.
• Section 40-23-62 is amended to exempt from use tax the storage, use, or consumption of the same equipment or materials used for broadband facilities.
• The act becomes effective immediately upon passage and approval by the governor.

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