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AL SB216
Bill
Status
2/20/2020
Primary Sponsor
Thomas Whatley
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AI Summary
SB216 Summary
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Removes the existing exclusion of highway, road, and bridge construction contracts from the sales and use tax exemption certificate program for governmental entities.
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Allows licensed contractors and subcontractors to obtain tax exemption certificates for materials and supplies used in highway, road, and bridge construction projects for tax-exempt governmental entities, effective for contracts entered into on or after January 1, 2021.
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Contractors must maintain accurate cost accounting of exempt purchases and file reports as prescribed by the Department of Revenue as a prerequisite to certificate renewal.
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Intentional misuse of exemption certificates is subject to civil penalties of at least $2,000 or two times the sales/use tax due, and may result in a two-year bar from using certificates.
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Act becomes effective October 1, 2020.
Legislative Description
Sales and use tax, construction contracts for highways, roads, and bridges, Revenue Dept., issuance of exemption certificates if gov't entity contracting is tax exempt, Sec. 40-9-14.1 am'd.
Sales and Use Tax
Last Action
Read for the first time and referred to the Senate committee on Finance and Taxation Education
2/20/2020