HB 401 Summary

• Amends Alabama Code Sections 40-23-4 and 40-23-62 to add sales and use tax exemptions for metals held for investment purposes.

• Exempts metals (other than gold or silver) purchased to transfer to an investment trust in exchange for publicly traded shares or units representing fractional beneficial interests in the trust's net assets.

• Includes metals stored in Alabama warehouses and exempts transfers of such metals to or from investment trusts in exchange for publicly traded shares or units.

• Defines eligible metals as copper, aluminum, nickel, zinc, tin, lead, and similar metals typically used in commercial and industrial applications.

• Becomes effective on the first day of the third month following passage and approval by the Governor.