AL SB89

Amends Section 40-12-222 of the Code of Alabama 1975 to clarify payment and collection of state and local privilege or license taxes on leasing and rental of tangible personal property.

Establishes that lessors may pass tax amounts to lessees by adding taxes to the leasing price, with all such amounts included in gross proceeds subject to the privilege or license tax owed by the lessor.

For non-automotive tangible personal property, tax liability is determined based on either where the property is delivered to the lessee or where it is picked up at the lessor's rental location.

For automotive vehicles required to be registered under Section 32-6-61, the initial lease payment is taxed based on delivery or pickup location, while all subsequent lease payments are taxed based on the lessee's resident address as provided to the county licensing official.

Declares the provisions as declaratory of existing law and applies retroactively to all open tax periods, effective immediately upon passage and approval by the Governor.