HB496 Alabama 2023 Session

Summary

Primary Sponsor

Anthony DanielsRepresentative

Democrat

Session

Regular Session 2023

Title

Relating to taxation; to amend Section 40-23-4, Code of Alabama 1975, to exempt the purchase of a general aviation aircraft and any machinery or equipment installed on a general aviation aircraft from sales and use tax in certain circumstances.

Summary

HB496 would add sales and use tax exemptions in Alabama for purchasing certain general aviation aircraft and their installed equipment under two specific conditions.

What This Bill Does

The bill amends Section 40-23-4 to exempt from Alabama sales and use taxes the purchase of a general aviation aircraft and any machinery or equipment installed on the aircraft in two scenarios: (a) aircraft manufactured, sold, and delivered in Alabama that are not permanently domiciled in Alabama and are removed to another state, and (b) general aviation aircraft owned or leased as of October 1, 2022 by an Alabama-based corporation, with the exemption also applying to the sale of the aircraft and any machinery or equipment to be installed on it. It defines a general aviation aircraft as a civil aircraft over 10,000 pounds that is not commercial, military, or unmanned. The exemption would take effect on October 1, 2023.

Who It Affects

• Purchasers of general aviation aircraft that are not permanently domiciled in Alabama and are moved to another state, who would not have to pay Alabama sales and use tax on the purchase.
• Alabama-based corporations that own or lease general aviation aircraft as of October 1, 2022, where the sale of the aircraft and any equipment to be installed on it would be exempt from Alabama sales tax.

Key Provisions

• Amends Section 40-23-4 to exempt the purchase of a general aviation aircraft and any machinery or equipment installed on the aircraft from sales and use tax in two specified circumstances.
• (38)(a) Exemption for aircraft manufactured, sold, and delivered in Alabama that are not permanently domiciled in Alabama and are removed to another state.
• (38)(b) Exemption for general aviation aircraft owned or leased as of Oct 1, 2022 by an Alabama corporation; exemption covers the sale of the aircraft and any equipment to be installed.
• Defines 'general aviation aircraft' as an aircraft over 10,000 pounds used in civil aviation that is not commercial, military, or unmanned.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Sales and use tax, general aviation aircrafts, tax exemption provided for