Title 40

(a) The Department of Human Resources and the Department of Revenue shall adopt rules as necessary, on or before January 1, 2025, for the implementation and administration of this article. Such rules shall ensure that: (Act 2024-303, §6.)

(a) All filings and applications made with the Department of Revenue in relation to the employer tax credit or the facility tax credit shall be made using forms adopted by the Department of Revenue. Such applications and filings shall be treated as tax returns, subject to penalti…

This article, the purpose of which is to generate additional funds for eligible rural general acute care, critical access, and rural emergency hospitals to strengthen their financial viability, shall be known and may be cited as the “Rural Hospital Investment Act of 2025.” (Act 2…

For the purposes of this article, the following terms have the following meanings: (1) BOARD. The Rural Hospital Investment Program Board. (2) DEPARTMENT. The Alabama Department of Revenue. (3) ELIGIBLE RURAL HOSPITAL. A hospital that meets the requirements set out in Section 40-…

(a) The Rural Hospital Investment Program Board is established within the department to oversee the development and operation of the Rural Hospital Investment Program. The board shall consist of the following members: (1) The Governor, or his or her designee. (2) The State Treasu…

(a) In order to receive qualified donations as an eligible rural hospital under the program, a health care institution shall meet all of the following requirements: (1) Be a rural general acute care hospital, a rural emergency hospital, or a critical access hospital licensed by t…

The board shall do all of the following: (1) No later than November 1 of each year, create an operations manual for identifying rural hospitals and ranking the rural hospitals in order of financial need according to the criteria included in the hospital’s five-year plan. The manu…

(a) An eligible rural hospital shall only use qualified donations for the purpose of providing health care to the residents of the area that the rural hospital serves, which may include operational expenditures and expenditures for maintenance, capital upgrades, and improvements.…

Annually, the board and the department shall jointly prepare a report that, at a minimum, includes all qualified donations reported by eligible rural hospitals and all tax credits claimed and approved pursuant to this article for the preceding tax year. This report shall be provi…

(a) A taxpayer may claim a tax credit to offset eligible taxes for each qualified donation as provided in this section. (1) For a donor who is a single individual, a head of household, or married filing a separate return: an amount equal to 100 percent of the qualified donations …

(a) The statewide annual aggregate of the tax credit allowed for qualified donations shall not exceed the following amounts: (1) Twenty million dollars ($20,000,000) in the tax year ending December 31, 2026. (2) Twenty-five million dollars ($25,000,000) in the tax year ending Dec…

(a) The department shall adopt rules pursuant to the Alabama Administrative Procedure Act to administer and implement this article, inclusive of the responsibility of the board. The rules shall provide for all of the following: (1) That the tax credits will not reduce the distrib…

The tax credits created by this article may also qualify for federal income tax credits or deductions, but it is not intended for any qualified donation under this article to automatically qualify for any federal income tax credit or deduction. (Act 2025-404, §12.)

(a) The tax credits provided by this article may be claimed beginning January 1, 2026, for the 2026 tax year. (b) Except as provided in Section 40-18-557(b)(2), no tax credit may be claimed after tax year 2028. (Act 2025-404, §13.)

The following words, terms and phrases, when used in this chapter, shall have meanings ascribed to them in this section, except where the context clearly indicates a different meaning: (1) VEHICLE TRANSPORTING PROPERTY. A straight truck with two axles, a trailer, a truck semitrai…

The Department of Revenue is empowered to enter into reciprocal agreements or contracts with other states constituting a fair exchange of rights or privileges in regard to the use of the highways of this state by motor vehicles operated for hire under the provisions of this chapt…

When any motor carrier shall be delinquent in paying the mileage tax as provided in this chapter for a period of 60 days, the Department of Revenue shall notify the Alabama Public Service Commission of such default in writing, and the Alabama Public Service Commission may suspend…

The Department of Revenue is empowered and directed to collect all of the mileage taxes under this chapter. In order to ascertain the mileage traveled in this state by motor vehicles subject to the provisions of this chapter, the Department of Revenue shall prescribe the records …

Every motor carrier and every officer, agent, or employee of any such motor carrier and every other person who violates or causes or aids or abets any violation of any provision of this chapter or order, rule, or regulation of the Department of Revenue or of the Alabama Public Se…

The Department of Revenue is empowered to employ such agents or employees as are necessary for the collection of said mileage tax. (Acts 1939, No. 664, p. 1050, §17; Code 1940, T. 48, §301(49).)

Every such motor carrier shall file with the Department of Revenue a bond in the sum not to exceed $1,000, made payable to the State of Alabama to insure the collection of such mileage tax. Such bond to be approved by the Commissioner of the Department of Revenue; provided, that …

All such mileage tax, penalties, fees and amounts collected under this chapter shall be paid into the Treasury within 30 days after their receipt and shall be kept separate and apart from all other funds by the Treasurer in a fund to be known as the Motor Carrier Fund. The Motor …

(a) The mileage tax required under the provisions of this chapter to be paid by the contract carriers and common carriers, subject to the provisions of this chapter, to the state as compensation for use of the public highways of the state shall be paid to the Department of Revenu…

Every motor carrier of persons for hire traversing the highways of the state, subject to the provisions of an act known as the Alabama Motor Carrier Act of 1939 [Chapter 3 of Title 37], shall pay to the State of Alabama into the fund of the state Department of Revenue as contribu…

The taxes levied under the provisions of this chapter shall be due and payable in monthly installments on or before the fifteenth day of the month next succeeding the month in which the tax accrues. On or before the fifteenth day of each month, every motor carrier on whom the tax…

(a) It shall be the duty of every motor carrier subject to the tax imposed by this chapter to keep and preserve suitable records of the mileage traveled by every vehicle subject hereto and such other books or accounts as may be necessary to determine the amount of tax for which s…

For the purpose of this article, the following terms shall have the respective meanings ascribed by this section: (1) DEPARTMENT. The state Department of Revenue. (2) ANNUAL. The calendar year or the taxpayer’s fiscal year, when permission is obtained from the department to use a…

If it is brought to the attention of the department that any producer is guilty of violating any of the provisions of this article, the department is hereby authorized and required, through lawfully authorized counsel, to proceed in the courts of the state to obtain a writ of inj…

(a) All oil or gas produced, all leases in production, including mineral rights in producing properties, and all oil or gas under the ground on producing properties within the State of Alabama shall be exempt from all ad valorem taxes now levied or hereafter levied by the State o…

If the department is authorized by any other law to collect any further or additional taxes from producers, as herein defined, such taxes shall be collected in the same manner as the taxes herein provided, and the return of such taxes shall be included in the report for the taxes…

(a)(1) There is hereby levied, to be collected hereafter, as herein provided, annual privilege taxes upon every person engaging or continuing to engage within the State of Alabama in the business of producing or severing oil or gas, as defined herein, from the soil or the waters,…

In addition to the definitions contained in Section 40-20-1, which shall apply for purposes of this article, except to the extent there is a conflict with the definitions contained herein, the following definitions shall apply for the purposes of this article. (1) Gross Proceeds.…

The privilege tax levied by this chapter as it applies to offshore production from depths greater than 8,000 feet below mean sea level shall not be computed as a percentage of gross value at the point of production, as provided in Article 1, but shall be computed as a percentage …

(a) The tax levied by this chapter and computed pursuant to Section 40-20-21 applies to all offshore production produced from depths greater than 8,000 feet below mean sea level, regardless of the method or place or timing of delivery or sale, or the manner or place of processing…

(a) Ninety percent (90%) of the net amount of taxes collected by the department on oil or gas produced from submerged lands which are not deemed to be onshore lands for allocation and distribution purposes pursuant to subsections (d) or (e) shall be deposited to the State General…

(a) The privilege tax hereby imposed is levied upon the producers of such oil or gas in the proportion of their ownership at the time of severance, but, except as otherwise herein provided, the tax shall be paid by the person in charge of the production operations, who is hereby …

(a) The department is hereby authorized and directed to administer and enforce the provisions of this article and to collect all of the taxes levied under the provisions hereof. Every person producing or in charge of production of oil and gas shall file a return with the departme…

All reports required under the provisions of this article shall be filed with the department on or before the fifteenth day of the second calendar month following the month of production and shall cover the second preceding calendar month. All producers are hereby required to pay…

Such amount of money as shall be appropriated for each fiscal year by the Legislature to the Department of Revenue with which to pay the salaries, the cost of operation and the management of the said department shall be deducted, as a first charge thereon, from the taxes collecte…

(a) Ninety percent of the net amount of all taxes herein levied and collected by the department on oil or gas produced from submerged lands as herein defined shall be deposited to the State General Fund. The remaining 10 percent of such net amount shall be allocated and distribut…

All reports required to be filed under the provisions of this article shall be made on blanks, furnished by the department, which shall contain the following certificate: “I hereby certify under oath that I am duly authorized to make this tax return; that the information herein c…

For the purpose of this article, the following terms shall have the respective meanings ascribed by this section: (1) OIL, GAS AND OTHER MINERALS. Oil, gas, petroleum, hydrocarbons, distillate, condensate, casing-head gas, other petroleum derivatives and all other similar mineral…

There is hereby levied and shall be paid and collected as herein set forth a documentary or transfer tax, to be known as the mineral documentary tax, upon the filing and recording of every lease and other writing hereafter executed whereby there is created a leasehold interest in…

Such tax shall be a lien upon the interest leased, assigned, conveyed, reserved, excepted or transferred, and the amount to be paid shall be determined as follows; provided, that the minimum tax shall be $1: (1) Upon the filing and recording of each instrument creating, assigning…

Such tax shall be payable by the grantee or grantees named or the beneficiary or real party in interest under such lease, deed, conveyance, transfer, assignment or other writing; except, that as to any exception or reservation creating any such interest the same shall be payable …

Such tax shall be paid to the probate judge of the county in which the land affected by the sale, lease or reservation or other instrument of such oil, gas or other minerals is situated, and the said judge shall stamp or write the name of the county and the amount of tax paid on …