SB345 Summary

• Amends Alabama Code sections 40-12-223, 40-23-4, and 40-23-62 to create new tax exemptions for electronically transferred products acquired with less than permanent ownership rights or conditioned on continued payment.

• Exempts "products transferred electronically" including video programming services, subscription video services, video on demand television services, and broadcasting services from rental, sales, and use taxes.

• Excludes computer software and digital video/audio products from the exemption, defining "permanent use" as perpetual or indefinite ownership and clarifying that subscription-based access does not constitute permanent use.

• Establishes that permanent use is presumed granted unless the seller-purchaser agreement specifies or circumstances indicate the right to use terminates upon a condition subsequent.

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