HB410 Alabama 2021 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Session

Regular Session 2021

Title

Taxation, sale of certain military aircraft parts, exemption extended, Sec. 40-23-4 am'd.

Summary

HB410 would extend the state sales tax exemption for certain aircraft parts through May 30, 2032 and remove the requirement that extensions be approved by joint resolution.

What This Bill Does

It would extend the exemption for gross receipts from the sale of parts, components, and systems that become part of fixed or rotary wing military aircraft or certificated transport category aircraft, to May 30, 2032. The exemption applies when the aircraft’s FAA registration address is not in Alabama. It would remove the provision allowing extension of the exemption by joint resolution, making the extension automatic. The exemption still does not apply to local (city or county) sales taxes unless the local law or resolution exempts it.

Who It Affects

• Sellers and distributors of eligible aircraft parts in Alabama, who would not collect Alabama state sales tax on these exempt sales when the buyer’s aircraft is not Alabama-domiciled and other criteria are met.
• Owners or operators of fixed or rotary wing military aircraft or certificated transport category aircraft that are not domiciled in Alabama and undergoing conversion, reconfiguration, or maintenance, who would benefit from the tax exemption on applicable purchases.

Key Provisions

• Extends the exemption period to May 30, 2032 for the sale of parts, components, and systems that become part of fixed or rotary wing military aircraft or certificated transport category aircraft undergoing conversion, reconfiguration, or maintenance, provided the aircraft’s FAA registration address is not in Alabama.
• Deletes language that allowed an extension of the exemption by joint resolution.
• Maintains that the exemption does not apply to local sales taxes unless exempted by local law or resolution.
• Effective immediately upon the governor’s approval.

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