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Bill > SB292


AL SB292

AL SB292
Relating to taxation and revenue; to provide for the Department of Revenue to grant certificates of exemption from sales and use taxes to contractors and subcontractors licensed by the State Licensing Board for General Contractors for the purchase of building materials and construction materials to be used in the construction of a building or other project for an entity statutorily exempt from paying sales and use taxes; and to provide for accounting for purchases and enforcement for violations.


summary

Introduced
05/03/2023
In Committee
05/17/2023
Crossed Over
05/16/2023
Passed
05/31/2023
Dead
Signed/Enacted/Adopted
05/31/2023

Introduced Session

Regular Session 2023

Bill Summary

Relating to taxation and revenue; to provide for the Department of Revenue to grant certificates of exemption from sales and use taxes to contractors and subcontractors licensed by the State Licensing Board for General Contractors for the purchase of building materials and construction materials to be used in the construction of a building or other project for an entity statutorily exempt from paying sales and use taxes; and to provide for accounting for purchases and enforcement for violations.

AI Summary

This bill provides for the Department of Revenue to grant certificates of exemption from sales and use taxes to contractors and subcontractors licensed by the State Licensing Board for General Contractors. These certificates can be used to purchase building materials and construction materials that will be used in the construction of a building or other project for an entity that is statutorily exempt from paying sales and use taxes. The bill also requires contractors and subcontractors to maintain accurate cost accounting of their purchases and use of the property, and the Department of Revenue can assess taxes and penalties for any improper use of the certificates. The intent of the bill is to lower the administrative cost for the statutorily exempt entity, contractor, and subcontractor for construction projects on behalf of the exempt entity.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (2)

Last Action

Enacted (on 05/31/2023)

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