EXECUTIVE ORDER NUMBER 12

WHEREAS, under the Code of Alabama, certain non-profit entities are exempt, either expressly or otherwise, from the payment of sales, use, and lodgings taxes;

WHEREAS, information relating to tax-exempt status would be valuable to the state in determining the benefits of tax-exempt status to the state and its citizens;

WHEREAS, in an effort to acquire the information, Senate Bill 24 of the 2015 First Special Legislative Session (SB 24) passed the Legislature and became law, requiring all persons or entities exempt from the payment of Alabama sales, use and lodgings taxes, unless expressly excused, to obtain an annual certificate of exemption from the Alabama Department of Revenue (ADOR) and to file annual information reports with the Department of Revenue as set by administrative regulation;

WHEREAS, pursuant to the legislation, the Alabama Department of Revenue is authorized to develop rules regarding the required exemption certificates, the accompanying information to be reported by tax-exempt entities, and the penalties for non-compliance; and

WHEREAS, tax exempt entities subject to SB 24 raised concerns about the scope and extent of reporting requirements to be developed, including whether SB 24 and resulting regulations will impose undue burdens on tax-exempt entities.

NOW, THEREFORE, based upon these considerations, and for other good and valid reasons related thereto, I, Robert Bentley, Governor of the State of Alabama, by virtue of the authority vested in me by the Constitution and laws of the State of Alabama, do hereby create the Tax Exemption Advisory Council (the “Council”), to advise the ADOR and the Governor on implementing SB 24.

BE IT ORDERED, that the Council shall be comprised of no more than ten (10) representatives of tax-exempt entities subject to SB 24, appointed by the Commissioner of ADOR. The ADOR Commissioner shall chair the Council.  The members shall serve at the pleasure of the appointing authority, and may adopt rules of procedure as well as appoint sub-committees.

BE IT FURTHER ORDERED, that the Council shall make recommendations to ADOR on implementing SB 24, including, but not limited to, assisting ADOR with developing regulations for SB 24 that will allow the requisite information to be gathered in the least intrusive and least burdensome manner to the subject entities.

BE IT FURTHER ORDERED, that ADOR shall provide administrative support to the Council.

BE IT FURTHER ORDERED, that the Council shall meet at least monthly or otherwise at the call of the chair, and members may participate in meetings via telephonic or video conferencing. Members of the Council shall serve without compensation.

BE IT FURTHER ORDERED, that this Executive Order shall become effective immediately upon its execution and shall remain in effect until amended or modified by the Governor.

DONE AND ORDERED this 19th day of August, 2015.

Robert Bentley
Governor

Attested

John H. Merrill
Secretary of State