Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.77 - Exemption For Certain Purchases By Contractors And Subcontractors In Conjunction With Construction Contracts With Certain Governmental Entities And Statutorily Exempt Entities

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 On and after January 1, 2014, the sale to, or the storage, use, or consumption
			 by, any contractor or subcontractor of any tangible personal property to be
			 incorporated into realty pursuant to a contract entered into on or after
			 January 1, 2014, with a governmental entity is exempt from all state, county,
			 and municipal sales and use taxes.
For this rule, a governmental entity is defined as:
(a) The State of Alabama.
(b) A county or incorporated municipality of
			 the State of Alabama.
(c) An
			 educational institution of the State of Alabama, or a county or incorporated
			 municipality of the State of Alabama.
(d) An industrial or economic development
			 board or authority that is exempt from the payment of Alabama sales and use
			 taxes.
(e) Other governmental
			 entities that are exempt from the payment of Alabama sales and use
			 taxes.
(f) On or after January 1,
			 2019, the term governmental entity includes any public water or sewer
			 authority, district, system, or board that otherwise is exempt from sales and
			 use tax. The sale to, or the storage, use, or consumption by, any contractor or
			 subcontractor of any tangible personal property to be incorporated into realty
			 pursuant to a contract entered into on or after January 1, 2019, with any
			 public water or sewer authority, district, system, or board that otherwise is
			 exempt from sales and use tax is exempt from all state, county, and municipal
			 sales and use taxes.
(g) On or
			 after January 1, 2020, the term governmental entity includes any airport
			 authority established pursuant to Chapter 3 of Title 4 of the
Code
			 of Ala. 1975
, that otherwise is exempt from sales and use tax. The
			 sale to, or the storage, use or consumption by, any contractor or subcontractor
			 of any tangible personal property to be incorporated into realty pursuant to a
			 contract entered into on or after January 1, 2022, with an airport authority
			 that otherwise is exempt from sales and use tax is exempt from all state,
			 county, and municipal sales and use taxes.
(h) On or after January 1, 2022, the purchase
			 of construction materials for use on construction projects for governmental
			 entities; to include any contract for the construction of highways, roads, or
			 bridge projects is exempt from all state, county, and municipal sales and use
			 taxes.
(i) On or after April 14,
			 2022, the term governmental entity includes an agricultural authority,
			 established pursuant to Chapter 20 of Title 11 of the
Code of Ala.
			 1975
, that otherwise is exempt from sales and use tax. The sale
			 to, or the storage, use, or consumption by, any contractor or subcontractor of
			 any tangible personal property to be incorporated into realty pursuant to a
			 contract entered into on or after April 14, 2022, with an agricultural
			 authority that otherwise is exempt from sales and use tax is exempt from all
			 state, county, and municipal sales and use taxes.