HB340 Alabama 2021 Session

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, 2022 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

To amend Section 40-9-14.1 of the Code of Alabama 1975, relating to certificates of exemption from sales and use tax for governmental entities and their contractors for the purchase of construction materials for use on construction projects for the governmental entities; to include any contract for the construction of highways, roads, or bridges entered into after January 1, 2022, in the contracts required to be granted a certificate of exemption by the Department of Revenue for the purchase of construction materials to become a part of the project.