SB99 Alabama 2021 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2021

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.

Summary

SB99 would expand sales and use tax exemption certificates to cover highway, road, and bridge construction contracts when the government entity is tax-exempt, starting for contracts entered into after January 1, 2022.

What This Bill Does

The bill amends the exemption certificate rules to include highway, road, and bridge projects for tax-exempt governmental entities. It directs the Department of Revenue to issue exemption certificates to governmental entities and to licensed contractors/subcontractors for the purchase of construction materials that become part of the project. It also requires cost accounting and reporting by contractors, and establishes penalties for misuse of certificates and related enforcement provisions, with the new rules taking effect for contracts entered into on or after January 1, 2022.

Who It Affects

• Governmental entities in Alabama (state, counties, municipalities, school systems, and other tax-exempt political subdivisions) that enter into construction contracts for highways, roads, or bridges.
• Contractors and subcontractors licensed to do work on those government projects, who purchase materials under a certificate of exemption.

Key Provisions

• Expands eligibility for a certificate of exemption to include contracts for the construction of highways, roads, or bridges entered into after January 1, 2022.
• Maintains and clarifies the exemption framework: the Department of Revenue issues certificates to governmental entities and contractors/subcontractors, requires cost accounting and exempt-purchase reporting, and imposes penalties for misuse.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Sales and Use Tax