SB 154

Section 1

Sections 23-2-142 and 23-2-153, Code of Alabama 1975, are amended to read as follows: "§23-2-142. "As used in this article, the following words and terms shall have the meanings, respectively, unless the context clearly indicates otherwise: "(1) AUTHORITY. The Alabama Toll Road, Bridge, and Tunnel Authority created by this article, or any board, body, or commission succeeding to the principal functions thereof or to which the powers given by this article to the authority shall be given by law. "(2) BONDS or TOLL ROAD, BRIDGE, OR TUNNEL REVENUE BONDS. Bonds of the authority authorized under the provisions of this article. "(3) CONCESSIONAIRE. A person, firm, corporation, partnership, limited liability company, or other legal entity described in Section 23-2-144(a)(12) which has been awarded a contract to construct or operate, or both, a toll road or bridge by the department or the authority. "(3) (4) COST. As applied to a toll road, bridge, or tunnel project, the cost shall include, but not be limited to, the following: "a. The cost of construction, including bridges over or under existing highways and railroads. "b. The cost of the acquisition of all land, rights-of-way, property, rights, easements, and interests acquired by or on behalf of the authority for construction. "c. The cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which buildings or structures may be moved. "d. The cost of diverting highways, interchange of highways, and access roads to private property, including the cost of land for easements therefor. "e. The cost of all machinery and equipment. "f. The cost of financing charges, including interest prior to and during construction and for one year after completion of construction. "g. The cost of traffic estimates, feasibility studies, engineering studies, design and other related studies and analyses, and legal fees and expenses. "h. Plans, specifications, surveys, and estimates of cost and of revenues. "i. The cost of other expenses necessary or incident to determining the feasibility or practicability of constructing a project. "j. The cost of administrative expense and other expense as may be necessary or incident to the construction of a project. "k. The cost of the financing of construction. "l. The cost of placing a project in operation. "m. Any other cost or expenditure necessary or incidental to the construction of a project, the financing of a project, and the placing of a project in operation. "n. Any obligation or expense which may be incurred by the State Department of Transportation for traffic surveys, borings, preparation of plans and specifications, and other engineering services in connection with the planning or construction of a project shall be regarded as a part of the cost of such project and shall be reimbursed to the State Department of Transportation by the authority. "(4)(5) DEPARTMENT. The State Department of Transportation. "(5)(6) PROJECT, TOLL ROAD, BRIDGE, AND TUNNEL PROJECT or TOLL ROAD, BRIDGE, OR TUNNEL PROJECT. Any type of toll road, bridge, causeway, tunnel, or other transportation facility established and constructed or to be constructed by or on behalf of the authority, in conjunction with the department, under this article, and shall include, but shall. The term includes, but is not be limited to, all toll roads, bridges, causeways, tunnels, overpasses, underpasses, interchanges, entrance plazas, approaches, access roads, toll houses, electronic tolling facilities and equipment, service areas, service stations, service facilities, communication and video and other surveillance facilities, and administration, storage, and other buildings which the authority may deem necessary for the operation of a project, together with. The term also includes, but is not limited to, all property, rights, easements, and interests which may be acquired by the authority for the construction, operation, and maintenance of a project, including a project that is leased to a concessionaire by the authority or the department. "§23-2-153. "(a) The exercise of the powers granted by this article will shall be in all respects for the benefit of the people of the state, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions. Since the ownership, operation, and maintenance of toll road, bridge, or tunnel projects by the authority will constitute the performance of essential functions, the authority, department, and any concessionaire, or any contractor, subcontractor, or agent thereof, shall not be required to pay any the taxes or assessments as specifically authorized in this section upon any toll road, bridge, or tunnel project or any property acquired or used by the authority, department, or any concessionaire under the provisions of this article or upon the income therefrom. Any toll road, bridge or tunnel project, any property acquired or used by the authority under the provisions of this article and the income therefrom and the bonds issued under the provisions of this article, their transfer and the income therefrom (including any profit made on the sale thereof) shall be exempt from taxation. "(b) An income, excise, or license tax or assessment may not be levied upon or collected in the state with respect to any corporate activities of the authority or the department or any of their revenues, income, or profit. The exemptions provided in this section do not extend to the taxes or fees levied under Division 1 of Article 5 of Chapter 17 of Title 8; Chapter 17 of Title 40; or the Rebuild Alabama Act (Act 2019-2, 2019 Regular Session). "(c) No ad valorem tax or assessment for any public improvement shall be levied upon or collected in the state with respect to any toll road, bridge, or tunnel project during any time that title to the toll road, bridge, or tunnel project is held by the authority or the department and any time that title to the toll road, bridge, or tunnel project is retained by the authority or the department pursuant to a lease with a concessionaire. "(d) No privilege or license taxes or assessments payable with respect to the recording or filing for record of any mortgage, deed, or other instrument, including, but not limited to, the privilege taxes under Chapter 22 of Title 40, shall be levied, charged, or collected in connection with the recording or filing for record of any mortgage, deed, or other instrument evidencing a conveyance to or the creation of any property interest in the authority or the department, any agreement or instrument to which the authority or the department is a party, or any mortgage, deed, or other instrument evidencing a conveyance from the authority or the department to another party or the creation by the authority or the department of any property interest in another party. "(e) Any tangible personal property which will become a permanent part of a project constructed by the authority, department, or any concessionaire, or any contractor, subcontractor, or agent thereof, shall be exempt from taxation and assessment, including sales or use taxes. However, any concessionaire, or contractor, subcontractor, or agent thereof, seeking an exemption of county or municipal sales or use taxes for itself or its contractors, subcontractors or agents, under the authority granted herein, shall receive an exemption certificate approved by resolution of the affected county or municipality. "(f) The authority, department, or any concessionaire, or any contractor, subcontractor, or agent thereof, shall be exempt from any tax imposed by Section 40-23-50 for the gross proceeds of the sale of materials or the gross receipts of services that are related to the construction of any project under this section. (g) The interest paid or accrued on all bonds, notes, or other obligations issued by the authority shall be free from taxation by the state or a county, municipality, or other political subdivision or instrumentality thereof. "(h)(1) The Department of Revenue shall issue a certificate of exemption to the authority, the department, a concessionaire, or any contractor, subcontractor, or agent thereof, for each toll road, bridge, or tunnel project for the purchase of building materials, construction materials and supplies, and other tangible personal property that becomes part of the project. Any use of the certificate issued under the authority of this subsection and subsection (e) shall be subject to the reporting and penalty provisions of Section 40-9-14.1. Any holder or user of such certificate shall maintain an accurate accounting of the purchase and use of the property and shall file, in a manner prescribed by the Department of Revenue, reports of all such purchases. "(2) It is the intent of the Legislature for this subsection to lower the administrative cost for the authority, department, and each concessionaire, and any contractor, subcontractor, or agent thereof, for toll road, bridge, or tunnel projects. "(i) Nothing in this section exempts any concessionaire, or any contractor, subcontractor, or agent thereof, from state income taxes. "(j) The Department of Revenue may adopt rules to implement, administer, and provide for accurate accounting and enforcement of this section."

Section 2

This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law. Senate Read for the first time and referred to the Senate committee on Transportation and Energy............ 2.0-MAR-19Read for the second time and placed on the calen- dar with 1 substitute and......................... 0.2-MAY-19Read for the third time and passed as amended .... 2.3-MAY-19 Yeas 30 Nays Patrick Harris, Secretary.