SB275 Alabama 2018 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

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

SB 275 adds a one-time grace period through Sept. 30, 2018 for united appeal fund entities and their supported charities to obtain or renew tax exemption certificates and satisfy reporting rules under the Tax Exemption Reform Act of 2017.

What This Bill Does

Creates a temporary grace period through September 30, 2018 for compliance with exemption certificates and informational reporting. establishes eligibility criteria as of July 1, 2017 for both united appeal funds and their supported charities to qualify for the grace period. clarifies that no refunds are issued for purchases during the period when exemption is not in effect. authorizes the Department of Revenue to publish a public record of exempt entities and to adopt enforcement rules.

Who It Affects

• United appeal fund organizations: may obtain or renew their exemption certificates and come into compliance during the grace period if they meet the July 1, 2017 criteria.
• Supported charities: may qualify for the grace period if they meet the July 1, 2017 criteria and have received more than de minimis funding from a qualified united appeal fund.

Key Provisions

• Adds Section 40-9-12.1 to provide a one-time grace period through September 30, 2018 for exemption certificate and reporting compliance.
• Eligibility for funds: as of July 1, 2017, united appeal funds must have met definitional requirements, held or be eligible to hold a sales/use tax Certificate of Exemption, and provided more than de minimis funding to supported charities.
• Eligibility for charities: as of July 1, 2017, a supported charity must meet definitional requirements and have received more than de minimis funding from a qualified united appeal fund.
• No refunds: purchases or transactions during the period without an active certificate of exemption are not refundable.
• Public records: the Department of Revenue may publish a public record listing exempt entities with status and dates.
• Rules and enforcement: the Department of Revenue may adopt and enforce rules for this section.
• Effective date: becomes effective immediately after 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