HB 391 Summary

• Exempts all airport authorities established under Alabama law from paying state, county, and municipal sales and use taxes on contracts entered into on or after January 1, 2020.

• Adds airport authorities to the definition of "governmental entity" eligible to receive tax exemption certificates from the Department of Revenue for certain construction projects and related contractor purchases.

• Requires airport authorities to obtain annual certificates of exemption from the Department of Revenue, consistent with requirements for other tax-exempt governmental entities.

• Applies Section 40-9-14.1 exemption provisions to airport authorities for construction contracts, including requirements for contractors to maintain cost accounting and file reports of exempt purchases.

• Becomes effective immediately upon passage and approval by the Governor.