HB164 Alabama 2018 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2018

Title

Tax Exemption Reform Act, united appeal fund entities and supported charities, grace period to obtain or renew certificate of exemption from Dept. of Revenue provided through Sept. 30, 2018, Sec. 40-9-12.1added

Summary

HB 164 creates a one-time grace period through Sept. 30, 2018 for united appeal fund organizations and their supported charities to obtain or renew tax-exemption certificates and to meet reporting rules.

What This Bill Does

It adds a new section giving eligible united appeal fund entities and their charities a grace period to obtain or renew their exemption certificates and to comply with informational reporting requirements. To qualify, funds must have met specific definitions and funding thresholds as of July 1, 2017, and have or be eligible for a sales tax exemption certificate; charities must meet their definitional requirements and have received more-than-de minimis funding. Purchases during the grace period without an active exemption would not be refunded. The Department of Revenue can publish a public list of exempt entities and may adopt rules to enforce the provisions.

Who It Affects

• United appeal fund organizations and their supported charities that previously met the 2017 definitions and funding requirements, allowing them a grace period to obtain or renew exemption certificates and to comply with reporting.
• The Alabama Department of Revenue and consumers/taxpayers, because the department administers the grace period, maintains exemption records, may publish a list of exempt entities, and enforces rules including refunds restrictions during the grace period.

Key Provisions

• Creates a one-time grace period through September 30, 2018 for united appeal fund entities and their supported charities to obtain the required exemption certificates and to comply with informational reporting.
• Eligibility for the grace period requires as of July 1, 2017: (a) funds and charities met the definitional requirements; (b) funds held or were eligible to hold a Certificate of Exemption; (c) funds provided more than de minimis funding.
• For charities to be eligible, as of July 1, 2017 they must meet definitional requirements and have received more than de minimis funding from a qualified united appeal fund.
• No refunds will be issued for purchases during the grace period if the exemption is not in effect.
• The Department of Revenue may publish a public record listing exempt entities with name, date of issuance, and current status (valid or invalid) and dates of changes.
• The Department of Revenue may adopt and enforce rules to administer and enforce these provisions.
• The act becomes effective immediately upon passage and approval.

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