HB511 Alabama 2021 Session

Summary

Primary Sponsor

Chip BrownRepresentative

Republican

Co-Sponsor

Rhett Marques

Session

Regular Session 2021

Title

Taxation, ad valorem tax, sales and use taxes, commercial fishing vessels and equipment exempt from ad valorem taxation, levy a rate differential of one and one-half percent on purchase and storage of vessels and machinery used for commercial fishing, Secs. 40-9-1, 40-23-1, 40-23-4, 40-23-37, 40-23-60, 40-23-63 am'd.

Summary

HB511 would exempt commercial fishing from ad valorem tax, impose a 1.5% rate on purchases and storage of fishing vessels and gear, and exempt bait and fishing materials from sales and use tax.

What This Bill Does

If passed, the bill would remove ad valorem taxes on all commercial fishing vessels and equipment. It would create a 1.5% differential sales/use tax on the purchase and storage of vessels and machinery used in commercial fishing. It would also exempt bait and all materials and equipment used in the process of commercial fishing from sales and use tax. Additionally, it defines commercial fishing and commercial fishing vessels for these tax purposes and sets an effective date of January 1, 2022.

Who It Affects

• Commercial fishing businesses and vessel/equipment owners, who would see an ad valorem tax exemption and a new 1.5% tax differential on eligible fishing purchases and storage.
• Vendors and suppliers of commercial fishing vessels, gear, bait, and related equipment, who would adjust pricing and tax collection to reflect the new exemptions and differential tax.

Key Provisions

• Exempts all commercial fishing vessels and equipment from ad valorem taxation.
• Levies a rate differential of 1.5% on the purchase and storage of vessels and machinery used for commercial fishing (with specified exclusions as defined in the act).
• Exempts bait and all materials and equipment used in the process of commercial fishing from sales and use tax.
• Defines commercial fishing and commercial fishing vessels for the purposes of ad valorem taxation and sale/use taxation, and sets the effective date of January 1, 2022.

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