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Alabama Tax Exemption for Community College Foundations

  • May 2, 2013 | Gail Cole

 Alabama: Calhoun Community College will benefit from the new sales tax exemption if it becomes law.

If Alabama Governor Robert Bentley (R) picks up a pen and signs HB 4 into law, "all property owned and used by the Lurleen B. Wallace Community College Foundation in furtherance of its charitable purpose" will be exempt from any state, county, and local ad valorem taxes. The governor is expected to do just that any day.

The Lurleen B. Wallace Community College is understandably thrilled by the prospect. A recent college news release proclaims that when the Alabama Legislature passed the bill, the foundation "took a giant step toward savings…"

The bill would allow the Foundation to "experience immediate savings in material costs during the construction phase and long-term savings in ad valorem taxes each year…." That will help defray the costs of building Saints Hall, a student residence currently under construction. It also means rents can remain low--welcome news to students. Kent Campbell, Saints Hall developer and manager, notes that "Property taxes alone would have pushed rents up by about $250 per student per year."

The Lurleen B. Wallace Community College will not be the only beneficiary of HB 4  if and when it becomes law. The bill includes an amendment to extend the exemption to the Calhoun Community College Foundation.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.