Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-4 - SALES TAX DUE MONTHLY; FILING OF REPORTS; RECORDS REQUIRED; REFUNDS; INTEREST; HEARINGS ON ASSESSMENTS; EXAMINATIONS OF RETURNS; INTER ALIA › Section 810-6-4-.23 - Application For The Abatement Of The Sales And Use Tax Liability Of The Private User Of Private Use Property To Which A Public Authority, County, Or Municipal Government Has Title Or A Possessory Right

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Unless otherwise defined herein, the
			 definitions of terms set forth in
Code of Ala. 1975
,
			 Section
			 40-9B-3,
			 are incorporated by reference herein.
(2) As used in this regulation, the term
			 "public body" means a public authority, county, or municipal
			 government.
(3) An application for
			 an abatement of sales and use taxes may be made by any person who proposes to
			 become a private user of industrial development property or of a major
			 addition. Such application shall be made to the appropriate public body as
			 outlined in
Code of Ala. 1975
, Section
			 40-9B-5,
			 and shall be made in advance of commencing the acquisition, construction, or
			 equipping of the project. Notwithstanding the foregoing, a private user who
			 commences the acquisition, construction, or equipping of a project prior to
			 making an application for abatement may nevertheless make said application
			 (such application shall be made to the appropriate public body as outlined in
			 Section
			 40-9B-5,
Code of Ala. 1975
, (1992 Cum. Supp.)) subsequent to
			 the aforementioned commencement and, if the abatement is granted, receive an
			 abatement of sales and use tax liabilities incurred during the period beginning
			 with the date of execution and delivery by a public body of an abatement
			 agreement and ending with the date the entire project is placed in service.
			 Sales and use tax liabilities incurred prior to the effective date of the
			 abatement cannot be abated.
(4) An
			 application for an abatement of sales and use taxes may be made to the
			 appropriate public body on an application form provided by the Alabama
			 Department of Revenue. The application furnished by the Alabama Department of
			 Revenue shall require the following information:
(a) the type(s) of taxes for which an
			 abatement is being requested,
(b)
			 applicant's SIC Code,
(c) an
			 indication as to whether the project is a new project or a major
			 addition,
(d) if applicable, an
			 indication as to whether the major addition equals the lesser of $2,000,000 or
			 30 percent of the original cost of existing industrial development
			 property,
(e) if the applicant is
			 applying for an abatement for a major addition and indicates that 30 percent of
			 original cost of the existing industrial development property is lesser than
			 $2,000,000; the original cost of the existing industrial development
			 property,
(f) project applicant's
			 legal name, trade name, and complete address,
(g) the city and county in which the project
			 is located,
(h) the date the
			 applicant's company was organized,
(i) the name and phone number of a contact
			 person,
(j) a description of the
			 project,
(k) estimated dates of
			 when construction will begin, when construction will be completed, and when the
			 property will be placed in service,
(l) estimates of the number of employees to
			 be hired initially and in each of the succeeding three years,
(m) estimates of the annual payroll of new
			 employees initially and in each of the succeeding three years,
(n) an estimate of the cost of real property
			 broken down by estimates of the cost of land, new building(s), and existing
			 building(s),
(o) an estimate of the
			 cost of materials to become a part of realty,
(p) an estimate of the cost of personal
			 property broken down by estimates of the cost of manufacturing machinery and
			 the cost of all other personal property,
(q) an indication as to whether bonds have
			 been issued for the project,
(r) if
			 bonds have been issued for the project, the date the bonds were
			 issued,
(s) if bonds have not been
			 issued for the project, an indication as to whether bonds will be
			 issued,
(t) if bonds will be issued
			 for the project, the projected date of the bond issue, and
(u) applicant's signature and title and the
			 date of the signature.