HB 164

Under existing law, the Tax Exemption Reform Act of 2017 required united appeal funds and their supported charities to obtain and maintain a certificate of exemption by meeting specific definitional requirements by July 1, 2017. In addition, united appeal funds and their supported charities are required to comply with information reporting requirements

This bill provides united appeal fund entities and supported charities subject to the requirements and definitions of the Tax Exemption Reform Act of 2017 a one-time grace period through September 30, 2018, to obtain or renew a certificate of exemption from the Department of Revenue

To add Section 40-9-12.1, Code of Alabama 1975, relating to united appeal fund organizations and their supported charities; to provide a grace period for compliance with the Tax Exemption Reform Act of 2017 and the informational reporting requirements as required by Section 40-9-60.

Section 1

To add Section 40-9-12.1, Code of Alabama 1975, as follows: (a) United appeal fund organizations and supported charities that otherwise satisfied the definitions provided under Section 40-9-12(c) as of July 1, 2017, but failed to acquire or maintain their exemption certificates as of July 1, 2017, or lost their exemption certificate due to failure to timely file an informational report as required by Section 40-9-60 and rules promulgated thereunder, are allowed a grace period through September 30, 2018, within which to obtain the certificate of exemption required under Section 40-9-12(c)(2) d. and to come into compliance with the informational reporting requirements of Section 40-9-60. (b) In order for a united appeal fund to be eligible for the grace period provided in subsection (a), the united appeal fund, as of July 1, 2017, must have met the following requirements in their entirety: (1) Satisfied the definitional requirements imposed by Section 40-9-12(c)(2). (2) Previously held or been eligible to hold a sales and use tax Certificate of Exemption. (3) Provided more than de minimis funding to supported charities. (c) In order for a supported charity to be eligible for the grace period provided in subsection (a), the supported charity, as of July 1, 2017, must have met the following requirements in their entirety: (1) Satisfied the definitional requirement imposed by Section 40-9-12(c)(1). (2) Received more than de minimis funding from a qualified united appeal fund. (d) No refunds shall be issued to such united appeal fund entity or supported charity, as defined in subsection (b) and (c) and those as defined in Section 40-9-12(c), for any purchases or transactions during a time period in which a certificate of exemption was not in effect regardless of whether such united appeal fund or supported charity falls under the provisions of this act. (e) The Department of Revenue may make available to the public a record of statutorily exempt entities that have been issued a certificate of exemption. Such listing shall be limited to the entity name, the date of issuance, and the current status of the certificate as either valid or invalid, including the date such certificate of exemption became invalid. (f) The Department of Revenue may adopt, promulgate, and enforce reasonable rules and regulations for the enforcement and administration of this section.

Section 2

This act shall become effective immediately following its passage and approval by the Governor, or upon its otherwise becoming law.