HB 292 — Relating to exemptions from ad valorem taxation; to amend Section 40-9-1, as last amended by Act 2022-199 of the 2022 Regular Session, Code of Alabama 1975; to exempt certain aircraft from ad valorem taxation.

HB292 INTRODUCEDENGROSSED Q7LK11-1Q7LK11-2 By Representative Sells RFD:

11-Apr-23 Page2023 0Regular Q7LK11-1Session 02/24/2023Page TEW0 (L)TEWHB292 2023-489Engrossed 2 4 Synopsis:A BILL TO BE ENTITLED AN ACT 9 Relating to exemptions from ad valorem taxation;

Under existing law, ad valorem taxation applies to all real property in the state unless expressly exempted by law.

This bill would exempt certain aircraft from ad valorem taxation.

A BILL TO BE ENTITLED AN ACT Relating to exemptions from ad valorem taxation;

(1) All bonds of the United States and this state and all county and municipal bonds issued by counties and municipalities in this state, all property, real and personal, of the United States and this state and of county and Page 1 HB292 INTRODUCED municipal corporations in this state;

provided, that property, real or personal, owned by any educational, religious, or charitable institution, society or Page 1 HB292 Engrossed corporation let for rent or hire or for use for business purposes shall not be exempt from taxation, notwithstanding that the income from such property shall be used exclusively for education, religious, or charitable purposes;

provided further, that such hospital need not be assessed for taxation if the owner or manager shall file with the county tax assessor Page 2 HB292 INTRODUCED wherein such hospital is located within the time allowed for assessing the property for taxation a certificate that such hospital has done 15 percent charity work in the preceding tax year;

and further provided, that such hospital through its owner or manager shall have until the expiration of the Page 2 HB292 Engrossed preceding tax year to class its work and ascertain whether or not such hospital has done 15 percent of its treatment of patients as charity work.

(6) The libraries of ministers of the gospel, all libraries other than those of a professional character and all Page 3 HB292 INTRODUCED religious books kept for sale by ministers of the gospel and colporteurs.

(7) The property of individuals who are deaf, hard of hearing, or insane to the extent of three thousand dollars ($3,000) and the property of blind individuals to the extent Page 3 HB292 Engrossed of twelve thousand dollars ($12,000).

(9) All cotton, livestock or agricultural products that have been raised or grown in the State of Alabama and remain in the hands of the producer thereof, or his or her landlord, 95 or in the hands of a cooperative association for all time, and for a period of one year in the hands of the purchaser or the manufacturer.

(10) All cotton, wherever grown, stored in licensed warehouses in the State of Alabama for a period not exceeding 95 12 months.

(12) No license or taxation of any character, except franchise taxes provided by Section 229 of the Constitution of the State of Alabama, shall be collected or required to be paid to the state or any county or municipality therein by any state or county fair, agricultural association, or stock, Page 4 HB292 INTRODUCED kennel or poultry show.

provided, that the revenue received from athletic stadiums, when admission is charged, shall be Page 4 HB292 Engrossed used for the benefit of athletic associations of such universities, colleges, or schools.

(15) All property, both real and personal, owned by any unit or organization of the Alabama National Guard officially recognized as such by the federal government and organized and maintained by the state, and all property owned by shares and used exclusively by and kept exclusively in the possession of Page 5 HB292 INTRODUCED any such unit or organization of the Alabama National Guard, the annual rent or hire of which is not in excess of the annual state, county, and municipal taxes on the property shall be exempt from taxation by the state, and the county and municipality in which the same may be situated.

Page 5 HB292 Engrossed (16) All poultry.

Page 6 HB292 INTRODUCED (22) All farm tractors, as that term is defined in Section 32-1-1.1;

Page 6 HB292 Engrossed (23) All grain bins used exclusively for the purpose of storing, holding, drying, preserving, or otherwise preparing a grain, as defined in Section 2-31-1, for market.

Page 7 HB292 INTRODUCED (26) All property described in Title 12 U.S.C.

(27) All vessels and equipment thereon, used predominantly in the business of commercial fishing, as Page 7 HB292 Engrossed defined in Section 40-23-1, by the owners thereof.

(28) All civil aircraft, as defined by Section 23-1-352,23-1-352 and operating under 14 CFR Part 91, over 30 years old that are owned by any person who is 65 years of age or older." Section 2.

This act shall become effective October 1, 20232024 following its passage and approval by the Governor, or its otherwise becoming law.

Page 8 HB292 Engrossed House of Representatives Read for the first time and referred ................11-Apr-23 to the House of Representatives committee on Ways and Means General Fund Read for the second time and placed ................27-Apr-23 on the calendar:

amendment Read for the third time and passed ................24-May-23 as amended Yeas 99 Nays 0 Abstains 1 John Treadwell Clerk Page 9