It was the intent of the Legislature in enacting Sections 40-12-220 to 40-12-227, inclusive, to impose a license tax or privilege tax on lessors based on the gross proceeds derived from the leasing or rental of tangible personal property. It is also the intent of the Legislature to permit lessors of tangible personal property to pass on to lessees such license or privilege taxes by adding such taxes to the leasing price or otherwise, with all such amounts constituting the gross proceeds subject to the privilege or license tax provided in this article. The purpose of Act 2001-636 is to clarify and insure the implementation of the actual purpose and original intent of the Legislature when it enacted this article.
Structure Code of Alabama
Title 40 - Revenue and Taxation.
Article 4 - Leasing or Renting Tangible Personal Property.
Section 40-12-220 - Definitions.
Section 40-12-220.1 - Legislative Intent.
Section 40-12-221 - License Required.
Section 40-12-222 - Levy and Amount of Tax.
Section 40-12-223 - Exemptions.
Section 40-12-224 - Collection of Tax.