SB154 Alabama 2019 Session

Summary

Primary Sponsor

Chris ElliottSenator

Republican

Session

Regular Session 2019

Title

Toll roads and bridges, Toll Road, Bridge and Tunnel Authority, state and local tax exemptions further provided, Secs. 23-2-142, 23-2-153 am'd.

Summary

SB 154 expands and clarifies tax exemptions for the Alabama Toll Road, Bridge, and Tunnel Authority and related entities on toll projects and their construction materials and income.

What This Bill Does

It provides broad state and local tax exemptions for toll project income, property used for the project, and the revenues and bonds connected to those projects. It exempts the interest on project bonds and allows exemption certificates for tangible personal property that becomes part of a project, with local governments issuing certificates for county or municipal sales or use tax exemptions. It also forbids certain taxes on the Authority, Department, concessionaires, and contractors, but notes some taxes (listed in the bill) still apply, and it requires the Department of Revenue to issue and administer exemption certificates and adopt rules. The act becomes effective immediately after passage.

Who It Affects

• The Alabama Toll Road, Bridge, and Tunnel Authority, the State Department of Transportation, concessionaires, and contractors—affected by broad exemptions from income, property, and construction-related taxes and from certain recording and tax obligations.
• Local counties and municipalities and the Department of Revenue—affected through the exemption certification process for local sales or use taxes and the administrative rules and reporting requirements.

Key Provisions

• Exempts toll project income, property used for toll projects, and the income from toll projects from state and local taxes and assessments.
• No ad valorem (property) taxes while ownership is held by the Authority or retained by the Department under lease to a concessionaire.
• No privilege or license taxes on conveyances or agreements related to toll projects and related property.
• Permanent tangible personal property that becomes part of a project is exempt from taxation, with local exemption certificates possible for county/municipal sales or use taxes.
• Exempts gross proceeds or receipts from sale of materials or services related to construction of toll projects from certain taxes.
• Interest on bonds and other obligations issued for the projects is tax-exempt at state and local levels.
• The Department of Revenue must issue exemption certificates for purchases that become part of the project and collect related reporting, with penalties for noncompliance; rules may be adopted to implement these exemptions.
• Concessionaires and contractors are not exempt from state income taxes solely due to this act.
• The act is effective immediately after 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

Toll Roads and Bridges