MONTGOMERY — The Alabama House Ways and Means Education Committee passed multiple bills on Wednesday that would allow activity from nonprofit programs to be tax-exempt.
The bills are for programs at Big Oak Ranch, Sleep in Heavenly Peace, Greater Peace Community Corporation and Goodwill Industries of the Southern Rivers.
Ways and Means chair State Rep. Danny Garrett (R-Trussville) said there isn't a blanket process for nonprofit tax exemptions, so committee and legislative approval provide checks and balances to avoid fraud, as in Minnesota.
"Anything that affects revenue comes through this committee, and this committee has 15 people on it," Garrett explained. "We look through all of these bills and in this case, you have to be specifically exempted."
State Rep. Craig Lipscomb (R-Gadsden) is carrying House Bill 411 to exempt the Big Oak Ranch auxiliary from payment or collection of state, county and municipal sales and use tax for a canteen.
"I think we can all agree that the Big Oak Ranch is one of our favorite nonprofits in the state," Lipscomb told the committee. "They have, in addition to their typical tax exemption for the primary body of their organization, they have an auxiliary," Lipscomb explained. "What this auxiliary does is it has a more immediate and direct impact on the students and children who are in the Big Oak Ranch and the girls' ranch. They have a little canteen where they will small goods, like candies and such. When they purchase these items, they would request that they get the tax exemption for the auxiliary."
Local governments may opt in or opt out of the exemption.
State Sen. April Weaver (R-Brierfield) and State Rep. Mark Gidley (R-Hokes Bluff) are sponsoring companion bills for Sleep in Heavenly Peace, Inc., a national nonprofit with nearly 10 chapters in Alabama. There are currently 2,301 children on the waiting list for a bed. Gidley said he supports the organization and wants it exempt from sales and use taxes.
"This is a great organization, and I am extremely familiar with it, and they do great work," said Gidley.
House Bills 422 and 423, by State Rep. Jeremy Gray (D-Opelika), for Greater Peace Community Corporation and Goodwill Industries of the Southern Rivers, also passed the committee.
To connect with the author of this story or to comment, email [email protected].
Don't miss out! Subscribe to our newsletter and get our top stories every day or become a member to gain access to exclusive content and 1819 News merch.
