The Legislature has passed and the Governor has signed Act No. 2001-636 which amends Sections 40-12-220 and 40-12-222, Code of Alabama 1975 to clarify the original legislative intent to allow a lessor of tangible personal property to pass the rental tax amount on to the lessee and to require the lessor to include such amounts as taxable gross proceeds, subject to the rental tax. However, the amendatory language of this act does not allow a lessor to pass on such amounts to the lessee on the leasing of tangible personal property to the State of Alabama, or a municipality or county of the State, unless the flat amount includes both the tax and the leasing fee.

This legislation has a retroactive effect to January 1, 1988.

Notices to Taxpayers