HB391 Alabama 2020 Session

Summary

Primary Sponsor

Rex ReynoldsRepresentative

Republican

Session

Regular Session 2020

Title

Airport authorities, sales and use tax exemption, issuance of certificate of exemptions by Revenue Dept., Secs. 40-9-14.1, 40-9-60 am'd.

Summary

HB391 would exempt airport authorities from sales and use taxes and include them in Alabama's exemption certificate program for government projects, with an annual exemption requirement.

What This Bill Does

The bill makes airport authorities not have to pay state, county, or municipal sales and use taxes beginning January 1, 2020. It adds airport authorities to the entities that can receive tax exemption certificates for projects and to the group that must obtain an annual exemption certificate. It also allows contractors and subcontractors working on these airport projects to receive certificates for purchasing building materials, with requirements to track costs and report exempt purchases. Violations can lead to penalties and possible removal from the exemption program.

Who It Affects

• Airport authorities: become tax-exempt for sales and use taxes starting in 2020, and must obtain annual exemption certificates.
• Contractors and subcontractors working on airport-related projects: may use exemption certificates to buy materials that become part of the project, with reporting and accounting requirements and penalties for misuse.

Key Provisions

• Airport authorities are exempt from paying state, county, and municipal sales and use taxes starting January 1, 2020.
• Airport authorities are added to the list of governmental entities that may receive certificates of exemption for tax-exempt projects.
• Airport authorities must obtain an annual certificate of exemption, renewed each year.
• Contractors and subcontractors on airport projects may receive certificates of exemption for purchasing building materials and supplies; purchasers must maintain cost accounting of exempt purchases.
• The Department of Revenue may assess taxes for improperly exempt purchases and impose penalties for misuse of exemption certificates, potentially including a ban from future exemptions.
• Definitions of governmental entities are updated to include airport authorities for certificate purposes.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation