The bill HB269 Engrossed amends Sections 40-23-4 and 40-12-223 of the Code of Alabama 1975 to revise sales and use tax exemptions for aircraft and parts, as well as lease tax exemptions for aircraft not domiciled in Alabama. It introduces new legal language that expands exemptions to include gross receipts from the lease of certain aircraft not based in the state, providing a tax incentive for leasing these aircraft. The bill also clarifies existing exemptions for sales of aircraft and parts, ensuring they are not subject to sales and use taxes. Additionally, it deletes outdated provisions that limited the scope of these exemptions, modernizing the tax code to better align with current aviation industry practices.

Furthermore, the bill includes new exemptions for gross receipts from the sale of aircraft manufactured or delivered in Alabama, provided they are not permanently domiciled in the state, and specifies that these exemptions will not apply to county or municipal taxes unless approved by local governing bodies. The bill also modifies language regarding aviation-related products and services, clarifies definitions related to air transportation, and establishes exemptions for certain sales in the oil and gas sector. Overall, HB269 aims to streamline tax exemptions, promote economic growth in Alabama's aviation sector, and ensure compliance with local regulations.

Statutes affected:
Introduced: 40-23-4
Engrossed: 40-23-4