HB334 Alabama 2019 Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

Regular Session 2019

Title

Taxation, statutorily exempt entities further provided for, Secs. 40-9-12, 40-9-13, 40-9-25, 40-23-5 am'd.

Summary

HB 334 would require statutorily exempt entities to possess and maintain a current exemption certificate to keep their tax exemption.

What This Bill Does

It amends sections 40-9-12, 40-9-13, 40-9-25, and 40-23-5 to require a current Certificate of Exemption for exemption eligibility. It retains a long list of exempt organizations, but their exemption now depends on ongoing certificate maintenance. If an entity does not have or keep a current certificate, its exemption could be invalid, affecting its tax liability for state, county, and municipal taxes, licenses, fees, and charges. The act becomes law after the governor signs it and the specified effective date arrives.

Who It Affects

• Statutorily exempt nonprofit and charitable organizations listed in the amended sections (e.g., YMHA/JCC, United Way organizations, American Cancer Society, Boy Scouts, Girl Scouts, Salvation Army, etc.) — must obtain and retain a current exemption certificate to maintain their tax exemption.
• State and local tax authorities (e.g., Alabama Department of Revenue and local governments) — must verify current exemption certificates, administer the certificate requirement, and process refunds where applicable.

Key Provisions

• Amends sections 40-9-12, 40-9-13, 40-9-25, and 40-23-5 to require a current exemption certificate for exemption eligibility.
• Keeps the list of exempt organizations but ties their exemption to possession and retention of a valid Certificate of Exemption as required by law.
• Maintains existing provisions that exempt organizations may still be subject to refund procedures for certain taxes when exempt, provided a valid certificate is held.
• Provides that the act takes effect on the first day of the third month after its passage and governor 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