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Code of Alabama — Title 40 (Revenue and Taxation)

Ala. Code § 40-21-83

Exclusions. (Amended by Act 2026-595)

Official textalison.legislature.state.al.us11 subsections

AMENDED BY ACT 2026-595, EFFECTIVE SEPTEMBER 1, 20276. SEE ACT FOR REVISED LANGUAGE.
There are specifically excluded from the gross receipts or gross sales of a utility, all revenues derived from any of the following:

# (1)

The furnishing of utility services which the State of Alabama is prohibited from taxing under the Constitution or laws of the United States of America or the Constitution of the State of Alabama.

# (2)

The furnishing of utility services which are otherwise taxed under Sections 40-23-1 to 40-23-36, inclusive.

# (3)

Wholesale sales.

# (4)

The furnishing of electricity, natural gas, or domestic water for use or consumption by, in, or for the direct production, generation, processing, storage, delivery, or transmission of electricity, natural gas, or domestic water.

# (5)

The furnishing of electricity to a manufacturer or compounder for use in an electrolytic or electrothermal manufacturing or compounding process.

# (6)

The furnishing of natural gas to a manufacturer or compounder as a chemical raw material in the manufacturing or compounding of tangible personal property, but not as fuel or energy.

# (7)

The furnishing of natural gas to be used by a manufacturer or compounder to chemically convert raw materials prior to the use of the converted raw materials in an electrolytic or electrothermal manufacturing or compounding process.

# (8)

The use or consumption of electricity by an incorporated municipality, a board, or corporation organized under the authority of any incorporated municipality in furnishing or providing street lighting or traffic-control systems; the use or consumption of telephone services by an incorporated municipality in providing fire alarm systems; and the use or consumption of domestic water by an incorporated municipality in extinguishing fires, explosions, or conflagrations.

# (9)

The furnishing of natural gas or electricity for use or consumption as fuel or energy in and for the heating of poultry houses.

# (10)

The furnishing of utility services through the use of a prepaid telephone calling card.

Last amended: Acts 1969, Ex. Sess., No. 21, p. 46, §5; Acts 1969, No. 993, p. 1757; Acts 1975, No. 1198, p. 2374, §1; Acts 1976, No. 387, p. 491, §2; Acts 1992, No. 92-623, p. 1466, §4; Acts 1995, No. 95-742, p. 1687, §1; Acts 1997, No. 97-867, 1st Ex. Sess., p. 208, §1.

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In this chapter (40 sections)
  1. 40-21-30 · Description of Franchises and Intangibles
  2. 40-21-32 · Procuring Information from Other Sources When Taxpayer Fails…
  3. 40-21-33 · Duties of Receivers, Assignees or Trustees in Bankruptcy
  4. 40-21-34 · Report of Commission to Assessors; Entries by Assessors
  5. 40-21-50 · Levied Generally
  6. 40-21-51 · Distribution of Revenues Generally
  7. 40-21-52 · Freight Lines and Equipment Companies
  8. 40-21-53 · Electric, Hydroelectric, Gas, or Any Other Public Utility -…
  9. 40-21-54 · Electric, Hydroelectric, Gas, or Any Other Public Utility -…
  10. 40-21-55 · Electric, Hydroelectric, Gas, or Any Other Public Utility -…
  11. 40-21-56 · Manufacturers and Sellers of Hydroelectric Power
  12. 40-21-60 · Express Companies - Generally
  13. 40-21-61 · Express Companies - Alternative Tax
  14. 40-21-62 · Report of Gross Receipts by Utility
  15. 40-21-63 · Receipts from Department
  16. 40-21-64 · Counties Not to Levy Privilege or License Taxes
  17. 40-21-80 · Definitions
  18. 40-21-81 · Legislative Intent
  19. 40-21-82 · Levy of Tax; Sourcing of Gross Sales or Gross Receipts from…
  20. 40-21-82.1 · Exemptions
  21. 40-21-83 · Exclusions. (Amended by Act 2026-595)
  22. 40-21-84 · Utility License Required
  23. 40-21-85 · Administration of Article and Collection of Tax
  24. 40-21-86 · Responsibilities of Utilities
  25. 40-21-87 · Disposition of Proceeds of Tax
  26. 40-21-88 · Liability of Retailer
  27. 40-21-100 · Definitions
  28. 40-21-101 · Legislative Intent
  29. 40-21-102 · Levy of Tax; Sourcing of Total Sales Price for Telegraph or…
  30. 40-21-103 · Exclusions. (Amended by Act 2026-595)
  31. 40-21-104 · Utilities to Register and Give Information
  32. 40-21-105 · Seller to Collect Tax; Regulations; Penalty
  33. 40-21-106 · Procedure for Collecting Tax
  34. 40-21-107 · Disposition of Proceeds of Tax
  35. 40-21-120 · Definitions
  36. 40-21-121 · Levy of Tax; Procedure for Collecting Tax
  37. 40-21-122 · Exclusions
  38. 40-21-123 · Dispositions of Proceeds of Tax
  39. 40-21-124 · License
  40. 40-21-125 · Liability of Provider
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