§ 40-23-4.8 — Exemption for Sale of Certain Aircraft Replacement Parts, Components, Etc

Alabama § 40-23-4.8

• Jurisdiction: Alabama
• Title 40: Revenue and Taxation
• Ch. 23: Sales and Use Taxes
• Art. 1: Sales Tax
• Div. 1: General Provisions

Text

(a) The gross receipts from the sale of aircraft replacement parts, components, systems, sundries, and supplies affixed to, used on, or that became part of, aircraft brought into the state and used, or to be used, by a certified or licensed air carrier to undergo conversion, reconfiguration, or general maintenance while temporarily within this state are exempt from the state sales and use taxes provided for in Sections 40-23-2 and 40-23-61.
(1) Under this section, an aircraft shall be considered not permanently domiciled in Alabama if either of the following non-exclusive conditions are true:
a. The hanger, airstrip, or other housing unit in which the aircraft is primarily based, departs from, and returns to in its normal operation is located outside of Alabama; or
b. The purchaser’s headquarters are not in Alabama on the date of purchase and the aircraft will be operated by either: (i) a certificated air carrier holding a certificate of public convenience under 49 U.S.C. § 40102; or (ii) a foreign air carrier or intrastate air carrier, as defined by 49 U.S.C. § 40102.
(b) The exemption provided in this section shall not apply to county or municipal sales or use taxes unless approved by resolution or ordinance adopted by the local governing body.
(c) The exemption provided pursuant to this section shall be available from September 1, 2025, to August 31, 2030.

Legislative History

(Act 2025-240, §1.)