SB216 Alabama 2020 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2020

Title

Sales and use tax, construction contracts for highways, roads, and bridges, Revenue Dept., issuance of exemption certificates if gov't entity contracting is tax exempt, Sec. 40-9-14.1 am'd.

Description

Under existing law, a licensed contractor is required to be issued a certificate of exemption from sales and use taxes by the Department of Revenue for the purchase of construction materials and supplies to be used in a construction contract for a governmental entity when the governmental entity is exempt from the payment of sales and use tax. Any contracts for the construction of a highway, road, or bridge is not included in the type of contracts for which a contractor is required to be granted a certificate of exemption under this law.

This bill would include any contract for the construction of a highway, road, or bridge entered into on or after January 1, 2021 in the contracts required to be granted a certificate of exemption from sales and use tax for the purchase of construction materials when the contract is for a governmental entity which is tax exempt by deleting the exclusion of the contracts in existing law.

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Subjects

Sales and Use Tax