Reporting of Tax Exempt Property by Lessee.

Ala. Code tit. 40, ch. 9A

in effect

Ala. Code § 40-9A-1 Definitions.

40-9A-1. Definitions. For purposes of this chapter, the following words and phrases mean: (a) PRIVATE USER. Any individual, partnership, or corporation organized for profit that is or will be treated as the owner of private use property for federal income tax purposes. (b) PRIVATE USE PROPERTY. Any real and/or personal property which is or will be treated as owned by a private user for federal income tax purposes even though title may be held by a public authority or municipal or county government. (c) PUBLIC AUTHORITY. A corporation created for public purposes pursuant to a provision of the Constitution of Alabama of 1901 or a general or local law that authorized it to issue bonds, the interest on which is exempt from the Alabama income tax, as in effect on May 21, 1992. (Acts 1992, No. 92-598, §1.)

Ala. Code § 40-9A-2 Private User Leasing Private Use Property from Government Required to File Report; Inability to File Information; Information Needed in Report.

40-9A-2. Private User Leasing Private Use Property from Government Required to File Report; Inability to File Information; Information Needed in Report. (a) Any private user of private use property leased by the private user from a municipality, county, or public authority of the State of Alabama shall, not later than January 1, 1993, file with the tax assessor of the county in which the leased property is located, the information required by subsection (c) of this section. (b) In the event any lessee described in subsection (a) of this section is unable to file the information required by subsection (c) of this section by January 1, 1993, such lessee shall on or before January 1, 1993, notify the tax assessor in writing, setting forth the item or items of required information which the lessee is unable to ascertain or calculate, the reason or reasons for such inability, and if the inability to file any one or more of the items of required information can be corrected with additional time, the additional time, not to exceed four months, which the lessee shall require. In the event any lessee described in subsection (a) of this section shall not have filed either the information required by subsection (c) of this section or the notification described in the preceding sentence of this subsection (b) by January 1, 1993, or having requested additional time as described in the preceding sentence of this subsection (b), shall not have filed within the additional time stated to be required the item or items for the ascertainment or calculation of which the additional time was required, the tax assessor of the county in which the leased property is located shall notify the lessee in writing by certified mail, specifying the action required of the lessee and stating that the same must be performed within 60 days of the date such notice is given, whereupon the lessee shall, within the required period, either file the items or items of missing information or a notification of inability to comply as described in the preceding sentence of this subsection (b). Notwithstanding the preceding sentence, any lessee who receives an extension shall file with both the tax assessor and the Department of Revenue the required information by April 30, 1993. (c) Every lessee of property described in subsection (a) of this section shall file the following information: (1) The location of the real property subject to the lease with the public authority, county, or municipality of the State of Alabama. (2) A list of all improvements to the property since the effective date of the lease with the public authority, county, or municipality of the State of Alabama. (3) A list of all personal property subject to the lease with the public authority, county, or municipality of the State of Alabama. (4) The purchase price and date of acquisition, or a reasonable estimate thereof, of such real and personal property. (5) An estimate of the fair and reasonable market value of the property; provided, however, that such estimate may be made without obtaining an appraisal of the property. (6) The effective date and term of the lease with the public authority, county, or municipality of the State of Alabama, including any extension or renewal options provided in the lease. (Acts 1992, No. 92-598, p. 1235, §2.)

Ala. Code § 40-9A-3 Tax Assessors to Forward Information to Department of Revenue.

40-9A-3. Tax Assessors to Forward Information to Department of Revenue. Every tax assessor shall, not later than March 1, 1993, forward to the Department of Revenue the following information: (a) A complete listing of all real property located in the county which is subject to a lease with a public authority, county, or municipality of the State of Alabama. (b) A complete listing of all personal property located in the county which is subject to a lease with a public authority, county, or municipality of the State of Alabama. (c) A complete listing of the purchase price and date of acquisition of such real and personal property. (d) A complete listing of the estimated fair and reasonable market value of such real and personal property. (e) The estimated tax revenue produced by such real and personal property if taxed at the rates applicable to taxable property located in the same jurisdiction. (f) A list of all lessees which have not filed the required information by January 1, 1993, including within such list a separate category of those lessees, if any, which shall have submitted a notification of inability as described in the first sentence of subsection (b) of Section 40-9A-2 and attaching to such list a copy of each such notification of inability. The completeness of the information required to be provided by the tax assessor pursuant to subsections (a) through (e) of this section shall be deemed subject to the list required to be provided pursuant to this subsection (f). (Acts 1992, No. 92-598, p. 1235, §3.)

Ala. Code § 40-9A-4 Department of Revenue to Compile Information and Submit to Legislature Report.

40-9A-4. Department of Revenue to Compile Information and Submit to Legislature Report. The Department of Revenue shall, not later than May 1, 1993, compile the information submitted pursuant to Section 40-9A-3 and provide to the Legislature the following information: (a) A complete listing of all real and personal property located in the state which is subject to a lease with a public authority, county, or municipality of the State of Alabama. (b) A complete listing of the estimated fair and reasonable market value of such real and personal property. (c) The estimated tax revenue produced by such real and personal property if taxed at the rates applicable to taxable property located in the respective jurisdictions. (d) A copy of all lists, if any, received by the department from tax assessors pursuant to subsection (f) of Section 40-9A-3. The completeness of the information required to be provided by the department pursuant to subsections (a) through (c) of this section shall be deemed subject to the list required to be provided pursuant to this subsection (d). (e) A list of all lessees which have not filed the information required by Section 40-9A-1 by January 1, 1993. (Acts 1992, No. 92-598, p. 1235, §4.)

Ala. Code § 40-9A-5 Tax Assessor May Require Government Entities to Provide Information for Use in Ascertaining Accuracy of Information.

40-9A-5. Tax Assessor May Require Government Entities to Provide Information for Use in Ascertaining Accuracy of Information. A county tax assessor may require any public authority, county, or municipality of the State of Alabama that owns property which must be reported to the assessor under the provisions of Section 40-9A-2 to provide any information in its possession to such assessor for use in ascertaining the completeness and accuracy of the information provided under Section 40-9A-2. (Acts 1992, No. 92-598, p. 1235, §5.)

Ala. Code § 40-9A-6 Failure to File; Filing of False or Incomplete Information; Enforcement of Reporting Requirements.

40-9A-6. Failure to File; Filing of False or Incomplete Information; Enforcement of Reporting Requirements. (a) If any lessee which is required to file the information required by Section 40-9A-2 fails to file either such information or a notification of inability as described in the first sentence of subsection (b) of Section 40-9A-2 within the time frames set forth in said subsection (b), or files false information, or files information that is so incomplete or inaccurate that the county tax assessor is unable to determine the information required by Section 40-9A-3 with reasonable accuracy, then such lessee shall be liable for a penalty equal in amount to $50 for each month or part of a month during which the act or omission subjecting the lessee to a penalty under this section occurs or continues. (b) The Department of Revenue is authorized to enforce the reporting requirements of Section 40-9A-1 by injunctive relief in the courts of this state and shall be entitled to recover from the defendant in such action any court costs incurred and reasonable attorney’s fees. (Acts 1992, No. 92-598, p. 1235, §6.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026