Taxation; certain aircraft and aircraft parts are exempt from sales, use, and lease taxes

SB 175 proposes to exempt certain aircraft and aircraft parts from state sales, use, and lease taxes. It would exempt gross receipts from the sale of specific aircraft and aircraft parts used by certified or licensed air carriers, provided the aircraft are not permanently domiciled or "hubbed" in Alabama. The bill also exempts the leasing or rental of certain aircraft parts from state lease or rental tax. Additionally, it allows municipalities and counties to choose whether to apply these same exemptions to local sales, use, and rental or lease taxes. These exemptions would be in effect from September 1, 2025, to August 31, 2030.