SB11 Summary

• Exempts all airport authorities established under Alabama law from paying state, county, and municipal sales and use taxes, effective January 1, 2020.

• Adds airport authorities to the definition of "governmental entity" in Section 40-9-14.1, allowing their contractors to receive tax exemption certificates for construction projects.

• Allows contractors working on airport authority projects to purchase building materials and construction supplies tax-exempt when properly documented and accounted for.

• Establishes that contractors misusing exemption certificates face civil penalties of not less than $2,000 or two times the tax owed, and can be barred from exemptions for up to two years.

• Includes airport authorities in Section 40-9-60's definition of governmental entities that are not required to obtain annual certificates of exemption from the Department of Revenue.