HB130 Alabama 2017 Session

Summary

Primary Sponsor

Terri CollinsRepresentative

Republican

Session

Regular Session 2017

Title

United Way and united appeal funds, tax exemption from all taxes, certain existing funds deemed included, Tax Exemption Reform Act of 2017, Sec. 40-9-12 am'd.

Summary

HB130 defines United Way and united appeal funds, updates tax-exemption rules for these funds and their charities, and adds annual reporting requirements to the Department of Revenue.

What This Bill Does

It creates formal definitions for United Way organizations, united appeal funds, supported charities, and United Way member agencies, and ties exemption eligibility to these definitions. It preserves the exemption for existing groups and property when they hold a valid Certificate of Exemption and meet reporting requirements, while adding criteria for united appeal funds. It requires United Way organizations to annually report their member agencies to the Department of Revenue, and clarifies that taxes paid on certain purchases by exempt groups can be refunded. It also specifies an effective date for the act.

Who It Affects

• United Way organizations and United Way member agencies in Alabama (and other qualifying united appeal funds and their recipients): they may maintain or obtain tax exemptions for real and personal property if they meet the new definitions and annual reporting requirements.
• Supported charities and other exempt organizations listed in the act (and the Department of Revenue): they become part of the defined exempt framework, must be identified by name in governing documents, and are subject to DoR oversight and reporting rules to maintain exemption status.

Key Provisions

• Defines United Way organizations, United Way member agencies, United Appeal Fund, and Supported Charity; specifies criteria for a United Appeal Fund to qualify (Alabama nonprofit, donations deductible for federal and Alabama tax purposes, principal purpose to raise funds for other charities, have a pre-existing Certificate of Exemption, and avoid de minimis support to any supported charity).
• States that United Way organizations and United Way member agencies, as well as other qualifying united appeal funds and their recipients, are exempt from state, county, and municipal taxes, licenses, and fees for their property used in programs; clarifies that receipts or charges for services are not treated as pecuniary gain for exemption purposes.
• Requires the Department of Revenue to accept annual lists of United Way member agencies from United Way organizations and to set a deadline for submission by rule.
• Provides that exemptions for gasoline, tobacco, playing cards, and similar taxes paid by exempt organizations are refundable through the Department of Revenue according to existing refund procedures.
• Lists numerous specific organizations whose real and personal property remains exempt under the act, including United Way organizations, United Way member agencies, community chests, and united appeal funds, alongside other long-standing charitable groups.

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