2020 Code of Alabama
Title 23 - Highways, Roads, Bridges and Ferries.
Chapter 2 - Toll Roads, Bridges and Ferries.
Article 5 - Alabama Toll Road, Bridge and Tunnel Authority.
Section 23-2-153 - Exemptions From Levy, Charge, Assessment, Collection, etc., of Certain Taxes; Certificate of Exemption.
Section 23-2-153
Exemptions from levy, charge, assessment, collection, etc., of certain taxes; certificate of exemption.
(a) The exercise of the powers granted by this article shall be in all respects for the benefit of the people of the state, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions. Since the ownership, operation, and maintenance of toll road, bridge, or tunnel projects by the authority will constitute the performance of essential functions, the authority, department, and any concessionaire, or any contractor, subcontractor, or agent thereof, shall not be required to pay the taxes or assessments as specifically authorized in this section upon any toll road, bridge, or tunnel project or any property acquired or used by the authority, department, or any concessionaire under this article.
(b) An income, excise, or license tax or assessment may not be levied upon or collected in the state with respect to any corporate activities of the authority or the department or any of its revenue, income, or profit. The exemptions provided in this section do not extend to the taxes or fees levied under Division 1 of Article 5 of Chapter 17 of Title 8; Chapter 17 of Title 40; or the Rebuild Alabama Act.
(c) No ad valorem tax or assessment for any public improvement shall be levied upon or collected in the state with respect to any toll road, bridge, or tunnel project during any time that title to the toll road, bridge, or tunnel project is held by the authority or the department and any time that title to the toll road, bridge, or tunnel project is retained by the authority or the department pursuant to a lease with a concessionaire.
(d) No privilege or license taxes or assessments payable with respect to the recording or filing for record of any mortgage, deed, or other instrument, including, but not limited to, the privilege taxes under Chapter 22 of Title 40, shall be levied, charged, or collected in connection with the recording or filing for record of any mortgage, deed, or other instrument evidencing a conveyance to or the creation of any property interest in the authority or the department, any agreement or instrument to which the authority or the department is a party, or any mortgage, deed, or other instrument evidencing a conveyance from the authority or the department to another party or the creation by the authority or the department of any property interest in another party.
(e) Any tangible personal property that will become a permanent part of a project constructed by the authority, department, or any concessionaire, or any contractor, subcontractor, or agent thereof, shall be exempt from taxation and assessment, including sales or use taxes. However, any concessionaire, or contractor, subcontractor, or agent thereof, seeking an exemption of county or municipal sales or use taxes for itself or its contractors, subcontractors, or agents, under the authority granted in this subsection, shall receive an exemption certificate approved by resolution of the affected county or municipality.
(f) The authority, department, or any concessionaire, or any contractor, subcontractor, or agent thereof, shall be exempt from any tax imposed by Section 40-23-50 for the gross proceeds of the sale of materials or the gross receipts of services that are related to the construction of any project under this section.
(g) The interest paid or accrued on all bonds, notes, or other obligations issued by the authority shall be free from taxation by the state or a county, municipality, or other political subdivision or instrumentality thereof.
(h)(1) The Department of Revenue shall issue a certificate of exemption to the authority, the department, a concessionaire, or any contractor, subcontractor, or agent thereof, for each toll road, bridge, or tunnel project for the purchase of building materials, construction materials and supplies, and other tangible personal property that becomes part of the project. Any use of the certificate issued under the authority of this subsection and subsection (e) shall be subject to the reporting and penalty provisions of Section 40-9-14.1. Any holder or user of the certificate shall maintain an accurate accounting of the purchase and use of the property and, in a manner prescribed by the Department of Revenue, shall file reports of all such purchases.
(2) It is the intent of the Legislature for this subsection to lower the administrative cost for the authority, department, and each concessionaire, and any contractor, subcontractor, or agent thereof, for toll road, bridge, or tunnel projects.
(i) Nothing in this section exempts any concessionaire, or any contractor, subcontractor, or agent thereof, from state income taxes.
(j) The Department of Revenue may adopt rules to implement, administer, and provide for accurate accounting and enforcement of this section.
(Acts 1980, No. 80-691, p. 1377, §13; Act 2019-471, §1.)
