1 HB480
2 204064-2
3 By Representative South (N & P)
4 RFD: Tuscaloosa County Legislation
5 First Read: 04-MAY-20
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1
2 ENROLLED, An Act,
3 Relating to Tuscaloosa County; to amend Sections 3,
4 3A, 4, and 4A of Act No. 56, 1953 Regular Session, as added or
5 amended by Act No. 94-554, 1994 Regular Session (Acts 1994, p.
6 1010), Act No. 96-554, 1996 Regular Session (Acts 1996, p.
7 814), and as amended by Act No. 2015-202, 2015 Regular Session
8 (Acts 2015, p. 596), which Act No. 56, 1953 Regular Session
9 (Acts 1953, p. 76), levies and authorizes the collection by
10 the county of certain sales and use taxes in the county; to
11 clarify the effect of the amendments previously made to Act
12 No. 56, 1953 Regular Session, by Act 2015-202; to clarify and
13 provide further for the levy and authorization of county sales
14 and use taxes with respect to the selling, storing, using, or
15 otherwise consuming of machines used in mining, quarrying,
16 compounding, processing, and manufacturing of coal; and to
17 provide for retroactive effect to March 1, 2020.
18 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
19 Section 1. Sections 3, 3A, 4, and 4A of Act No. 56,
20 1953 Regular Session (Acts, p. 76), as added or amended by Act
21 No. 94-554, 1994 Regular Session (Acts 1994, p. 1010), and Act
22 No. 96-554, 1996 Regular Session (Acts 1996, p. 814), and by
23 Act No. 2015-202, 2015 Regular Session (Acts 2015, p. 596),
24 are amended to read as follows:
25 "Section 3.
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1 "There is hereby levied in the county, in addition
2 to all other taxes of every kind now imposed by law, and shall
3 be collected as herein provided, a privilege or license tax
4 against the person on account of the business activities and
5 in the amount to be determined by the application of rates
6 against gross sales, or gross receipts, as the case may be, as
7 follows:
8 "(a) Upon every person, firm, or corporation
9 (including the University of Alabama, and all other
10 institutions of higher learning in the county, whether such
11 institutions be denominational, state, county, or municipal
12 institutions, and any association or other agency or
13 instrumentality of such institutions) engaged, or continuing
14 within the county, in the business of selling at retail any
15 tangible personal property whatsoever, including merchandise
16 and commodities of every kind and character (not including,
17 however, bonds or other evidences of debts or stocks), an
18 amount equal to three percent of the gross proceeds of sales
19 of the business, except where a different amount is expressly
20 provided herein. Any person engaging or continuing in business
21 as a retailer and wholesaler or jobber shall pay the tax
22 required on the gross proceeds of retail sales of such
23 business at the rates specified, when his books are kept to
24 show separately the gross proceeds of sales of each business,
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1 and when the books are not so kept, shall pay the tax as a
2 retailer on the gross sales of the entire business.
3 "(b) Upon every person, firm, or corporation
4 engaged, or continuing within the county, in the business of
5 conducting, or operating, places of amusement or
6 entertainment, billiard and poolrooms, bowling alleys,
7 amusement devices, musical devices, theaters, opera houses,
8 moving picture shows, vaudevilles, amusement parks, athletic
9 contests, including wrestling matches, prizefights, boxing,
10 and wrestling exhibitions, football, basketball, and baseball
11 games (including athletic contests conducted by or under the
12 auspices of any educational institution, or any athletic
13 association thereof, or other association whether the
14 institution or association is a denominational, state, county,
15 or municipal institution, or association, or a state, county,
16 or city school or other institution, association, or school),
17 skating rinks, racetracks, golf courses, or any other place at
18 which any exhibition, display, amusement, or entertainment is
19 offered to the public or place or places where an admission
20 fee is charged, including public bathing places and public
21 dance halls of every kind and description within the county,
22 an amount equal to three percent of the gross receipts of any
23 such business.
24 "(c) Upon every person, firm, or corporation engaged
25 or continuing within the county in the business of selling at
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1 retail any automotive vehicle, truck trailer, or semitrailer,
2 an amount equal to three-quarters of one percent of the gross
3 proceeds of the sale of the automotive vehicle, truck trailer,
4 or semitrailer. Where any used automotive vehicle, truck
5 trailer, or semitrailer is taken in trade, or in a series of
6 trades, as a credit or part payment on the sale of a new or
7 used vehicle, the tax levied herein shall be paid on the net
8 difference, that is, the price of the new or used vehicle sold
9 less the credit for the used vehicle taken in trade.
10 "(d) Upon every person, firm, or corporation engaged
11 or continuing within the county in the business of selling at
12 retail machines used in mining, quarrying, compounding,
13 processing, and manufacturing of tangible personal property,
14 except as provided in subsection (e) of this Section 3, an
15 amount equal to one and one-eighth of one percent of the gross
16 proceeds of the sale of such machines. The term machines, as
17 used herein, shall include machinery which is used for mining,
18 quarrying, compounding, processing, or manufacturing tangible
19 personal property, and the parts of such machines,
20 attachments, and replacements therefor, which are made or
21 manufactured for use on or in the operation of such machines
22 and which are necessary to the operation of such machines and
23 are customarily so used.
24 "Each exemption provided for in the state sales tax
25 statutes, shall, during the period of time when such exemption
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1 shall be effective in the statutes, be applicable to the tax
2 levied in this section. In the event of the repeal of the
3 state sales tax statutes, the exemptions effective therein
4 immediately prior to any repeal shall thereafter be applicable
5 to the tax levied in this section. In addition thereto, and
6 except as expressly enumerated hereinabove, there are hereby
7 exempted from the tax levied in this section the gross
8 receipts or gross proceeds of any business engaged in by any
9 city or town in Tuscaloosa County. In the absence of any
10 express provision herein to the contrary, all provisions and
11 procedures with respect to the application for and issuance of
12 licenses, the making of returns or reports, the contents of
13 returns or reports, collection and payment of taxes, keeping
14 of records, reporting and paying taxes with respect to sales
15 on credit, determination of the amount of the tax due,
16 penalties, assessments, notices, and examinations of taxpayers
17 and their books provided for in the state sales tax statutes
18 with respect to the tax levied in those statutes shall be
19 applicable to the tax levied in this section, excepting
20 however, the procedure for appeals from assessments, and such
21 appeals shall be made as hereinafter set forth. Any procedure
22 or provisions involving the State Department of Revenue which
23 is incorporated herein by reference to the state sales tax
24 statutes shall be deemed to apply, with respect to the tax
25 levied in this section, to the tax board. Every person, firm,
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1 or corporation engaged in any business upon which the tax
2 levied in this section is imposed shall add the tax herein
3 levied to the sales and admission price with respect to which
4 the tax is levied and shall collect the same from the
5 purchaser.
6 "(e) Upon every person, firm, or corporation engaged
7 or continuing within the county in the business of selling at
8 retail machines used in mining, quarrying, compounding,
9 processing, and manufacturing of coal, an amount equal to
10 nine-sixteenths of one percent of the gross proceeds of the
11 sales of such machines made on or after March 1, 2020.
12 "(e)(f) The sale of school lunches sold by all
13 public and private schools in Tuscaloosa County, Alabama, is
14 expressly exempted.
15 "Section 3A. Levy of Special Sales Tax. Effective as
16 of the date specified in an ordinance adopted from time to
17 time by the governing body of Tuscaloosa County directing the
18 levy of a special sales tax as herein provided, there shall be
19 levied in the county, in addition to all other taxes of every
20 kind now or hereafter imposed by law, and shall be collected
21 as herein provided, a privilege or license tax in the form of
22 a sales tax against the person or on account of the business
23 activities and in the amount to be determined by the
24 application of the Maximum Rate as defined in Section 1 of
25 this act as in effect on the date of adoption of the ordinance
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1 against gross sales, or gross receipts, as the case may be, as
2 follows:
3 "(a) Upon every person, firm, or corporation
4 (including the University of Alabama, and all other
5 institutions of higher learning in the county, whether such
6 institutions be denominational, state, county or municipal
7 institutions, and any association or other agency or
8 instrumentality of such institutions) engaged, or continuing
9 within the county, in the business of selling at retail any
10 tangible personal property whatsoever, including merchandise
11 and commodities of every kind and character (not including,
12 however, bonds or other evidences of debts or stocks), an
13 amount equal to the Maximum Rate multiplied by the gross
14 proceeds of sales of the business, except where a different
15 amount is expressly provided herein; provided, however, that
16 any person engaging or continuing in business as a retailer
17 and wholesaler or jobber shall pay the tax required on the
18 gross proceeds of retail sales of such business at the rates
19 specified, when his books are kept so as to show separately
20 the gross proceeds of sales of each business, and when his
21 books are not so kept he shall pay the tax as a retailer on
22 the gross sales of the entire business.
23 "(b) Upon every person, firm, or corporation
24 engaged, or continuing within the county, in the business of
25 conducting, or operating, places of amusement or
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1 entertainment, billiard and pool rooms, bowling alleys,
2 amusement devices, musical devices, theaters, opera houses,
3 moving picture show, vaudevilles, amusement parks, athletic
4 contests, including wrestling matches, prize fights, boxing
5 and wrestling exhibitions, football, basketball, and baseball
6 games (including athletic contests conducted by or under the
7 auspices of any educational institution, or any athletic
8 association thereof, or other association whether such
9 institution or association be a denominational, state, county,
10 or municipal institution or association or a state, county, or
11 city school, or other institution, association, or school,
12 skating rinks, race tracks, golf courses, or any other place
13 at which any exhibition, display, amusement or entertainment
14 is offered to the public or place or places where an admission
15 fee is charged, including public bathing places, public dance
16 halls of every kind and description within the county, an
17 amount equal to the Maximum Rate multiplied by the gross
18 receipts of any such business.
19 "(c) Upon every person, firm, or corporation engaged
20 or continuing within the county in the business of selling at
21 retail any automotive vehicle or truck trailer or
22 semi-trailer, an amount equal to one-fourth of the Maximum
23 Rate multiplied by the gross proceeds of the sale of said
24 automotive vehicle or truck trailer or semi-trailer. Where any
25 used automotive vehicle or truck trailer or semi-trailer is
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1 taken in trade, or in a series of trades, as a credit or part
2 payment on the sale of a new or used vehicle, the tax levied
3 herein shall be paid on the net difference, that is, the price
4 of the new or used vehicle sold less the credit for the used
5 vehicle taken in trade.
6 "(d) Upon every person, firm, or corporation engaged
7 or continuing within the county in the business of selling at
8 retail machines used in mining, quarrying, compounding,
9 processing and manufacturing of tangible personal property,
10 except as provided in subsection (e) of this Section 3A, an
11 amount equal to three-eighths of the Maximum Rate multiplied
12 by the gross proceeds of the sale of such machines. The
13 governing body of Tuscaloosa County shall establish categories
14 of machines including the categories of machines used in
15 mining coal and other machines at different rates that may
16 vary according to the dollar volume or other amount of the
17 machines in question. The rate established shall not exceed
18 the Maximum Rate; however, the rate may be less than the
19 Maximum Rate. The term 'machines,' as herein used, shall
20 include machinery which is used for mining, quarrying,
21 compounding, processing or manufacturing tangible personal
22 property, and the parts of such machines, attachments and
23 replacements therefor, which are made or manufactured for use
24 on or in the operation of such machines and which are
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1 necessary to the operation of such machines and are
2 customarily so used.
3 "(e) Upon every person, firm, or corporation engaged
4 or continuing within the county in the business of selling at
5 retail machines used in mining, quarrying, compounding,
6 processing, and manufacturing of coal, on or after March 1,
7 2020, an amount equal to three-sixteenths of the Maximum Rate
8 multiplied by the gross proceeds of the sales of such
9 machines.
10 "(e)(f) Notwithstanding anything in this Section 3A
11 to the contrary, all sales of tangible personal property
12 within the corporate limits of any municipality within
13 Tuscaloosa County shall be exempt from the special sales tax
14 levied by this Section 3A. All sales of tangible personal
15 property within the police jurisdiction of a municipality
16 within Tuscaloosa County otherwise subject to the tax imposed
17 by this Section 3A shall be entitled to a credit against such
18 tax equal to the amount of any sales tax paid to such
19 municipality with respect to such sale.
20 "Each exemption provided for in the state sales tax
21 statutes shall, during the period of time when such exemption
22 shall be effective in said statutes, be applicable to the tax
23 levied in this section; provided, that in the event of the
24 repeal of the state sales tax statutes, as at any time
25 amended, the exemptions effective therein immediately prior to
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1 any such repeal shall thereafter be applicable to the tax
2 levied in this section. In addition thereto, and except as
3 expressly enumerated hereinabove, there are hereby exempted
4 from the tax levied in this section the gross receipts or
5 gross proceeds of any business engaged in by any city or town
6 in Tuscaloosa County. In the absence of any express provision
7 herein to the contrary, all provisions and procedures with
8 respect to the application for and issuance of licenses, the
9 making of returns or reports, the contents of returns or
10 reports, collection and payment of taxes, keeping of records,
11 reporting and paying taxes with respect to sales on credit,
12 determination of the amount of the tax due, penalties,
13 assessments, notices, and examinations of taxpayers and their
14 books provided for in the state sales tax statutes with
15 respect to the tax levied in those statutes shall be
16 applicable to the tax levied in this section, excepting
17 however, the procedure for appeals from assessments, and such
18 appeals shall be made as hereinafter set forth; provided
19 however that any procedure or provisions involving the State
20 Department of Revenue which is incorporated herein by
21 reference to the state sales tax statutes shall be deemed to
22 apply, with respect to the tax levied in this section, to the
23 tax board. Every person, firm, or corporation engaged in any
24 business upon which the tax levied in this section is imposed
25 shall add the tax herein levied to the sales and admission
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1 price with respect to which the said tax is levied and shall
2