HB343 Alabama 2023 Session

Summary

Primary Sponsor

Prince ChestnutRepresentative

Democrat

Session

Regular Session 2023

Title

Relating to sales tax; to amend Section 40-23-4, as amended by Acts 2022-291, 2022-293, and 2022-373, 2022 Regular Session, Code of Alabama 1975, to revise the sales tax exemption for certain aircraft parts, components, and systems; to remove the provisions regarding military and transport aircraft; and to remove the provision that aircraft must be registered in another state.

Summary

HB343 would revise Alabama's sales tax exemption for aircraft parts by removing exemptions tied to military/transport aircraft and the requirement that aircraft be registered in another state.

What This Bill Does

The bill amends Section 40-23-4 to update the sales tax exemption for aircraft parts, components, and systems. It specifically eliminates the provisions that apply to military and transport aircraft and removes the rule that aircraft must be registered in another state to qualify for the exemption. As a result, the availability of the exemption could change for these aircraft categories, and the condition based on registration location would no longer apply. The act becomes effective on the first day of the third month after it is passed and signed by the Governor.

Who It Affects

• Aircraft manufacturers, distributors, airlines, and other buyers of aircraft parts and systems in Alabama, whose sales tax exemption eligibility would change under the revised provisions.
• Military and transport aircraft operators and suppliers, whose exemption status would be altered by removing the provisions specific to military/transport aircraft.

Key Provisions

• Remove the provisions relating to the exemption for military and transport aircraft from the aircraft parts exemption.
• Eliminate the requirement that aircraft must be registered in another state to qualify for the exemption.
• Rewrite the aircraft exemption language in Section 40-23-4 to reflect the new rules for exemptions.
• Effective date: the act takes effect on the first day of the third month after passage and Governor 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

Relating to sales tax, revising the sales tax exemption for certain aircraft parts.