HB349 Summary

• Amends Alabama Code sections 40-12-223, 40-23-4, and 40-23-62 to exempt products transferred electronically from rental, sales, and use taxes when acquired with less than permanent use rights or conditioned on continued payment.

• Defines "product transferred electronically" as property or services obtained by means other than tangible storage media, including video programming services, subscription video services, video on demand, and broadcasting services.

• Excludes computer software from the exemption, defining it as automatic data-processing equipment instructions, including system and application programs but not digital video and audio products transferred electronically.

• Establishes that subscription access does not constitute "permanent use" and creates a legal presumption that permanent use is granted unless the seller-purchaser agreement specifies otherwise or circumstances indicate the right to use terminates upon a condition.

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