HB10 Alabama 2022 Session

Summary

Primary Sponsor

Chip BrownRepresentative

Republican

Session

Regular Session 2022

Title

Taxation, commercial fishing, ad valorem tax exemption for vessels and equipment, sales and use taxes exemption for bait, levy of excise tax at 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

HB10 would exempt commercial fishing vessels and equipment from ad valorem tax, provide sales tax exemptions for bait and gear used by commercial fishermen, and impose a 1.5% excise tax on the purchase and storage of vessels and machinery used for commercial fishing.

What This Bill Does

The bill changes how taxes apply to commercial fishing. It exempts commercial fishing vessels and their equipment from ad valorem (property) tax. It also creates sales tax exemptions for bait and all materials and equipment used by commercial fishermen. Additionally, it imposes a 1.5% excise tax on the purchase and storage of vessels and machinery used for commercial fishing, with certain details to how the tax is calculated and applied, effective January 1, 2023.

Who It Affects

• Commercial fishing vessel owners and operators: will no longer pay ad valorem tax on vessels and fishing equipment, but will face a 1.5% excise tax on purchases and storage of vessels and machinery used for commercial fishing.
• Businesses that supply bait, materials, and equipment to commercial fishermen: will benefit from new sales tax exemptions for bait and all materials/equipment used by commercial fishermen.

Key Provisions

• Amends Section 40-9-1 to exempt all commercial fishing vessels and equipment from ad valorem taxation.
• Amends Sections 40-23-1, 40-23-4, 40-23-37, 40-23-60, and 40-23-63 to provide a sales and use tax exemption for bait and all materials and equipment used by commercial fishermen.
• Levies a rate differential of 1.5% on the purchase and storage of vessels and machinery used for commercial fishing (via 40-23-37 and 40-23-63), including parts, attachments, and replacements, with certain exemptions for farm-related vehicles or equipment.
• Effective date: January 1, 2023.

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