Form CO: CAA "Application to Granting Authority for Abatement of Taxes Under Chapter 9g, Title 40, Code of Alabama 1975" - Alabama

What Is Form CO: CAA?

This is a legal form that was released by the Alabama Department of Revenue - a government authority operating within Alabama. As of today, no separate filing guidelines for the form are provided by the issuing department.

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Form CO: CAA
6/15
A
D
r
lAbAmA
epArtment of
evenue
Application to Granting Authority
for Abatement of taxes
Under Chapter 9B, Title 40, Code of Alabama 1975
Noneducational Sales and Use Taxes, Noneducational Property Taxes, and/or Mortgage and Recording Taxes
This form is to be submitted to the granting authority for consideration in granting an abatement of all state and local noneducational property taxes, all con-
struction related transaction (sales and use) taxes, except those local construction related transaction taxes levied for educational purposes or for capital
improvements for education, and/or mortgage and recording fees, in accordance with the provisions of Section 40-9B-1 et seq., Code of Alabama 1975.
Sales & Use Taxes     
Property Taxes     
Mortgage & Recording Taxes
1a. TYPE OF ABATEMENT APPLYING FOR:
2. PROJECT NAICS CODE:
Yes     
No
New Project     
Major Addition To An Existing Facility
1b. IS APPLICANT REQUESTING PROPERTY TAX ABATEMENT FOR A PERIOD LONGER THAN 10 YEARS?
3. TYPE OF PROJECT:
4. DOES MAJOR ADDITION EQUAL THE LESSER OF: (CHECK APPLICABLE BOX)
$2,000,000
– OR –
30% of original cost of existing property, original cost $__________________________________
5. PROJECT APPLICANT:
DBA:
6. ADDRESS OF APPLICANT:
CITY:
STATE:
ZIP CODE:
7. NAME OF CONTACT PERSON:
EMAIL ADDRESS:
TELEPHONE NUMBER:
(
)
8. DATE COMPANY ORGANIZED:
9. PHYSICAL LOCATION OF PROJECT:
CITY (IF OUTSIDE CITY LIMITS, PLEASE INDICATE):
COUNTY:
ZIP CODE:
10. BRIEF DESCRIPTION OF PROJECT (ATTACH A COMPLETE AND DETAILED LISTING OF PROJECT PROPERTY COSTS TO ENABLE A COST/BENEFIT ANALYSIS BY GRANTING AUTHORITY):
11. ESTIMATED DATE CONSTRUCTION WILL BEGIN:
12. ESTIMATED DATE CONSTRUCTION WILL BE COMPLETED:
13. ESTIMATED DATE PROPERTY WILL BE PLACED IN SERVICE:
14. HAVE BONDS BEEN ISSUED FOR PROJECT:
15. WILL BONDS BE ISSUED FOR PROJECT
No
Yes If yes, date bonds issued:
No
Yes If yes, projected date of issue:
16. ESTIMATED NUMBER
17. ESTIMATED ANNUAL
18. COST OR VALUE FOR
19. COST SUBJECT TO
Estimated Investment for Project
OF NEW EMPLOYEES
PAYROLL OF NEW EMPLOYEES
PROPERTY TAX
SALES TAX
XXXXXXXXXX
INITIALLY
INITIALLY
18a
a. Land (if donated, show market value). . . . . . . . . . . . . . . . . . . . . . . . . . . . .
XXXXXXXXXX
YEAR 1
YEAR 1
18b
b. Existing Building(s) (if any) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
XXXXXXXXXX
YEAR 2
YEAR 2
18c
c. Existing Personal Property (if any) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
YEAR 3
YEAR 3
18d
19d
d. New Building(s) and/or New Additions to Existing Building(s)
(19d = building materials only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This form may be used as the application
18e
19e
to the granting authority required by
e. New Manufacturing Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 40-9B-6(a), Code of Alabama
1975. The information requested here is
18f
19f
f. Other New Personal Property
required by Section 40-9B-6 and Section
(non-mfg machinery, office equipment, computers, etc.) . . . . . . . . . . . . . .
40-2-11(7), Code of Alabama 1975.
18g
19g
g. TOTALS (PROPERTY TAX TOTAL MUST EQUAL TOTAL
$ 0
$ 0
PROJECT INVESTMENT. SALES TAX TOTAL WILL BE LESS.) . . . . . . .
The abatement of noneducational property taxes is based on the market value of specific assets; therefore, the actual amount of taxes abated is determined each year as the property is assessed
and valued. An abatement of noneducational sales and use taxes shall apply only to tangible personal property and taxable services incorporated into private use industrial property, the cost of
which may be added to capital account with respect to the property, determined without regard to any rule which permits expenditures properly chargeable to capital account to be treated as
current expenses. No abatement of sales and use taxes shall extend beyond the date private use industrial property is placed in service. A verification inspection of qualifying property will be
conducted by the Alabama Department of Revenue to insure compliance with Section 40-9B-1 et seq., Code of Alabama 1975, as amended.
I hereby affirm that, to the best of my knowledge and belief, the information in this application and any accompanying statement, schedules, and other information is true, correct and complete.
_____________________________________________________
NAME (PRINT)
_____________________________________________________
_____________________________________________________ _____________________________
SIGNATURE
TITLE
DATE
Form CO: CAA
6/15
A
D
r
lAbAmA
epArtment of
evenue
Application to Granting Authority
for Abatement of taxes
Under Chapter 9B, Title 40, Code of Alabama 1975
Noneducational Sales and Use Taxes, Noneducational Property Taxes, and/or Mortgage and Recording Taxes
This form is to be submitted to the granting authority for consideration in granting an abatement of all state and local noneducational property taxes, all con-
struction related transaction (sales and use) taxes, except those local construction related transaction taxes levied for educational purposes or for capital
improvements for education, and/or mortgage and recording fees, in accordance with the provisions of Section 40-9B-1 et seq., Code of Alabama 1975.
Sales & Use Taxes     
Property Taxes     
Mortgage & Recording Taxes
1a. TYPE OF ABATEMENT APPLYING FOR:
2. PROJECT NAICS CODE:
Yes     
No
New Project     
Major Addition To An Existing Facility
1b. IS APPLICANT REQUESTING PROPERTY TAX ABATEMENT FOR A PERIOD LONGER THAN 10 YEARS?
3. TYPE OF PROJECT:
4. DOES MAJOR ADDITION EQUAL THE LESSER OF: (CHECK APPLICABLE BOX)
$2,000,000
– OR –
30% of original cost of existing property, original cost $__________________________________
5. PROJECT APPLICANT:
DBA:
6. ADDRESS OF APPLICANT:
CITY:
STATE:
ZIP CODE:
7. NAME OF CONTACT PERSON:
EMAIL ADDRESS:
TELEPHONE NUMBER:
(
)
8. DATE COMPANY ORGANIZED:
9. PHYSICAL LOCATION OF PROJECT:
CITY (IF OUTSIDE CITY LIMITS, PLEASE INDICATE):
COUNTY:
ZIP CODE:
10. BRIEF DESCRIPTION OF PROJECT (ATTACH A COMPLETE AND DETAILED LISTING OF PROJECT PROPERTY COSTS TO ENABLE A COST/BENEFIT ANALYSIS BY GRANTING AUTHORITY):
11. ESTIMATED DATE CONSTRUCTION WILL BEGIN:
12. ESTIMATED DATE CONSTRUCTION WILL BE COMPLETED:
13. ESTIMATED DATE PROPERTY WILL BE PLACED IN SERVICE:
14. HAVE BONDS BEEN ISSUED FOR PROJECT:
15. WILL BONDS BE ISSUED FOR PROJECT
No
Yes If yes, date bonds issued:
No
Yes If yes, projected date of issue:
16. ESTIMATED NUMBER
17. ESTIMATED ANNUAL
18. COST OR VALUE FOR
19. COST SUBJECT TO
Estimated Investment for Project
OF NEW EMPLOYEES
PAYROLL OF NEW EMPLOYEES
PROPERTY TAX
SALES TAX
XXXXXXXXXX
INITIALLY
INITIALLY
18a
a. Land (if donated, show market value). . . . . . . . . . . . . . . . . . . . . . . . . . . . .
XXXXXXXXXX
YEAR 1
YEAR 1
18b
b. Existing Building(s) (if any) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
XXXXXXXXXX
YEAR 2
YEAR 2
18c
c. Existing Personal Property (if any) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
YEAR 3
YEAR 3
18d
19d
d. New Building(s) and/or New Additions to Existing Building(s)
(19d = building materials only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This form may be used as the application
18e
19e
to the granting authority required by
e. New Manufacturing Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 40-9B-6(a), Code of Alabama
1975. The information requested here is
18f
19f
f. Other New Personal Property
required by Section 40-9B-6 and Section
(non-mfg machinery, office equipment, computers, etc.) . . . . . . . . . . . . . .
40-2-11(7), Code of Alabama 1975.
18g
19g
g. TOTALS (PROPERTY TAX TOTAL MUST EQUAL TOTAL
$ 0
$ 0
PROJECT INVESTMENT. SALES TAX TOTAL WILL BE LESS.) . . . . . . .
The abatement of noneducational property taxes is based on the market value of specific assets; therefore, the actual amount of taxes abated is determined each year as the property is assessed
and valued. An abatement of noneducational sales and use taxes shall apply only to tangible personal property and taxable services incorporated into private use industrial property, the cost of
which may be added to capital account with respect to the property, determined without regard to any rule which permits expenditures properly chargeable to capital account to be treated as
current expenses. No abatement of sales and use taxes shall extend beyond the date private use industrial property is placed in service. A verification inspection of qualifying property will be
conducted by the Alabama Department of Revenue to insure compliance with Section 40-9B-1 et seq., Code of Alabama 1975, as amended.
I hereby affirm that, to the best of my knowledge and belief, the information in this application and any accompanying statement, schedules, and other information is true, correct and complete.
_____________________________________________________
NAME (PRINT)
_____________________________________________________
_____________________________________________________ _____________________________
SIGNATURE
TITLE
DATE
for Abatement of Taxes (Form CO: CAA)
Instructions for Preparing Application to Granting Authority
Under Chapter 9B of Title 40, Code of Alabama 1975
GENERAL INSTRUCTIONS
Chapter 9B, Title 40, Code of Alabama 1975, provides for an abatement of all state and local noneducational property taxes, all construction related trans-
action taxes (sales and use taxes), except those local construction related transaction taxes levied for educational purposes or for capital improvements
for education, and/or all mortgage and recording taxes relating to mortgages, deeds, and documents used to issue or secure obligations and convey title
into or out of the name of a public authority, county or municipal government.
This form is to be submitted to the granting authority for consideration in granting an abatement of noneducational sales and use taxes, noneducational
property taxes, and/or mortgage and recording taxes. If you have any questions about this form or the abatement of taxes in general, please con-
tact the Alabama Department of Revenue at (334) 242-1175.
A complete and detailed listing of project costs should be attached to this application in order for the granting authority to make a cost/benefit
analysis in accordance with Section 40-9B-6(a).
STATUTORY REQUIREMENTS FOR ABATEMENTS
The following are qualifying business activities under Section 40-9B-3, Code of Alabama 1975:
• Industrial or Research Enterprise – Any trade or business in the 2007 North American Industrial Classification System (NAICS), promulgated by the
Executive Office of the President of the United States, Office of Management and Budget as: Sectors 31 (except National Industry 311811), 32, 33,
55 (if not for the production of electricity), Subsectors 423, 424, 482, 493, 511, 517, 518, 927, Industry Groups 1133, 2121, 4862, 4882, 4883 (other
than 48833) 5121 (other than 51213), 5415, 5417, Industries 22111, 48691, 48699, 48819, 51221, 51913, 52232, 54133, 54134, 54138, 56291, 56292,
92811, National Industries 115111, 221330, 541614, 561422 (in bound call centers only), 562213, and 611512.
• Subsector 493, Industry Number 488310, or 488320 when such trade or business is conducted on premises in which the Alabama State Port Authority
has an ownership, leasehold, or other possessory interest and such premises are used as part of the operations of the Alabama State Port Authority.
These projects require written approval of the Governor, Finance Director, and the Director of the Alabama State Port Authority.
• Headquarters Facility – Any trade or business in the 2007 North American Industrial Classification System (NAICS), promulgated by the Executive
Office of the President of the United States, Office of Management and Budget as National Industry 551114 at which at least 50 new jobs are located.
• Data Processing Center – An establishment, at which at least 20 new jobs are located, engaged in the provision of complete processing and special-
ized reports from data, the provision of automated data processing and data entry services, the provision of an infrastructure for hosting or data pro-
cessing services, the provision of specialized hosting activities, the provision of application service provisioning, the provision of general time-share
mainframe facilities, or some combination of the foregoing, without regard to whether any other activities are conducted at the establishment.
• Research & Development Facility – An establishment engaged in conducting original investigations undertaken on a systematic basis to gain new
knowledge and/or applying research findings or other scientific knowledge to create new or significantly improved products or processes.
• Renewable Energy Facility – Any plant, property, or facility that either:
1.  Produces electricity or natural gas, in whole or in part, from biofuels as such term is defined in Section 2-2-90(c)(2) or from renewable energy
resources as such term is defined in Section 40-18-1(30) with the exception that hydropower production shall be excluded from such definition; or
2.  Produces biofuel as such term is defined in Section 2-2-90(c)(2).
• Alternative Energy Resources Electricity Production Project - A project owned by a utility described in Section 37-4-1(7)a, Code of Alabama 1975, or
owned by a company which is itself owned by a utility, at which the predominant trade or business activity conducted will be the production of electricity
from alternative energy resources (coal gasification or liquefaction, nuclear and/or advanced fossil-based generation), the capital costs of which are
not less than $100,000,000.
• Hydropower Electricity Production Project - A project owned by a utility described in Section 37-4-1(7)a, or owned by a company which is itself owned
by a utility, at which the predominant trade or business activity conducted will be the production of electricity from hydropower production as defined
in Section 40-18-1(16), the capital costs of which are not less than $5,000,000.
• Tourist Destination Attractions – A commercial enterprise which is open to the public not less than 120 days during a calendar year and is designed to
attract visitors from inside or outside of the State of Alabama, typically for its inherent cultural value, historical significance, natural or man-made beauty,
or entertainment or amusement opportunities. The term shall include, but not be limited to, a cultural or historical site; a botanical garden; a museum;
a wildlife park or aquarium open to the public that cares for and displays a collection of animals or fish; an amusement park; a convention hotel and
conference center; a water park; or a spectator venue or arena.
• Any of the 11 targeted business sectors under the Accelerate Alabama Strategic Economic Development Plan adopted in January 2012 by the
Alabama Economic Development Alliance, created by Executive Order Number 21 of the Governor on July 18, 2011, which include Advanced
Manufacturing in Aerospace/Defense, Automotive, Agricultural Products/Food Production, Steel/Metal, Forestry Products and Chemicals; Technology
in Biosciences, Information Technology, Enabling Technologies; Distribution/Logistics and Corporate Operations.
LINE BY LINE INSTRUCTIONS
Item 1a. Indicate the type(s) of abatement(s) being requested.
Item 6. Enter the address of the private user requesting abatement.
Sales and Use Taxes – Chapter 9B, Title 40, Code of Alabama 1975, pro-
Item 7. Enter the name, email address and telephone number of the per-
vides for the abatement of certain noneducational sales and use taxes
son to which all correspondence should be directed regarding the
imposed by Chapter 23 of Title 40, Code of Alabama 1975. The abatement
abatement.
applies to the tangible personal property and taxable services incorporated
Item 8. Enter the date the company was organized.
into the project, the cost of which may be added to the capital account with
respect to the project. However, only the state and local noneducational
Item 9. Enter the physical location of the project. Please include a detailed
sales and use taxes may be abated. No sales and use tax abatement shall
extend beyond the date the project is placed in service.
location, including the City, County and Zip Code.
Property Taxes – Chapter 9B, Title 40, Code of Alabama 1975, provides
Item 10. Describe the type of business that the project will be engaged in.
for the abatement of noneducational property taxes imposed by the state,
For projects that do not require a NAICS code, provide a detailed descrip-
counties, municipalities and other taxing jurisdictions in Alabama. Only
tion that will identify the activities as qualifying activities. Attach additional
industrial property not previously placed in service in Alabama by the user
sheets if necessary.
or a related party may be eligible for an abatement of noneducational prop-
Item 11. Enter the estimated date the construction of the project will begin.
erty taxes.
Mortgage And Recording Taxes – Chapter 9B, Title 40, Code of Alabama
Item 12. Enter the estimated date the construction of the project will be
1975, provides for the abatement of all taxes imposed by Chapter 22 of
completed. A data processing center project’s completion date will be the
Title 40 of the Code of Alabama 1975, relating to mortgages, deeds, and
maximum exemption period allowed pursuant to Section 40-9B-3(12)b.
documents used to issue or secure obligations and convey title into or out
Item 13. Enter the estimated date the project will be placed in service. If
of the name of a public authority.
revenue bonds are issued, "placed in service," for property tax purposes,
Item 1b. Indicate if applicant is requesting abatement of property taxes for
is determined as of the date of the initial issuance of such bonds.
a period longer than 10 years. For any property tax abatement that is
Otherwise, with the exception of a data processing center project, "placed
granted for over 10 years, the noneducational municipal taxes can only be
in service" for sales and use tax and property tax purposes is determined
abated by the City Government, noneducational county taxes can only be
as the later of 1) the date on which title to the property was acquired by or
abated by the County Government, and state taxes can only be abated by
vested in a county, city, or public authority, or 2) the date on which the prop-
the Governor. The governing body of the municipality and county can
erty is or becomes owned, for federal income tax purposes, by a private
authorize a public industrial authority to provide by resolution for such con-
user. A data processing center project’s placed in service date will be the
sent on its behalf.
maximum exemption period allowed pursuant to Section 40-9B-3(12)b.
Item 2. If the predominant business activity is a headquarters facility, an
Item 14. Indicate if bonds have been issued in financing the project. If
industrial or research enterprise as defined in Code of Alabama 1975
bonds have been issued, enter the issuance date.
Section 40-9B-3(10)(a) or a state docks project as defined in Section 40-
Item 15. Indicate if bonds will be issued for financing the project. If bonds
9B-3(10)(b), enter the 2007 North American Industrial Classification
System (NAICS) code for the project.
will be issued, enter the projected issuance date.
Item 3. Indicate if project is a new project or a major addition.
Column 16. Enter the estimated number of new employees to be hired at
the project. The law requires the number of employees to be employed at
New Project – Any new business in Alabama at which the predominant
the project initially and in each of the succeeding three years.
trade or business activity conducted will constitute an industrial or research
Column 17. Enter the estimated annual payroll for employees at the pro-
enterprise or other qualifying business activity as described above. If new
project, skip Item 4.
ject. The law requires the estimated payroll of new employees initially and
in each of the succeeding three years.
Major Addition – Pursuant to Section 40-9B-3(11), a major addition is an
Column 18.
addition to an existing facility in which the addition equals the lesser of thir-
ty (30) percent of the original cost of the existing land, buildings, and equip-
18a. Enter all costs or value for project land. If land is donated, enter the
ment (industrial development property), or $2,000,000, and at which the
predominant trade or business activity conducted in Alabama will constitute
market value of the land.
an industrial or research enterprise or other qualifying business activity as
18b. Enter all costs or value for existing building(s), if any.
described above. Capitalized repairs, rebuilds, maintenance, replacement
equipment, or costs associated with the renovating or remodeling of exist-
18c. Enter all costs or value for existing personal property to be incorpo-
ing facilities of industrial development property previously placed in service
in Alabama by the Company are not eligible for abatement under Chapter
rated into project. Only personal property not previously placed in service
9B.
in Alabama by the private user or a related party can be included. If a pri-
vate user is including existing equipment from outside of Alabama, the
Item 4. Indicate if major addition is in accordance with Section 40-9B-3(11)
existing equipment should be entered here at its original cost.
requirement as denoted above. If major addition does not meet threshold
18d. Enter the total cost for new building(s) and/or new additions to exist-
requirement, project is not qualified to receive abatement. Original cost
should include the total cost of existing facilities as of the date of
ing building(s). Total cost includes building materials, construction costs,
application.
engineering costs, etc. Costs associated with renovating or remodeling
existing facilities of an operating industrial or research enterprise do not
Item 5. Enter the name of the private user requesting abatement. If project
qualify for abatement.
is doing business under another name, also enter the name of the compa-
18e. Enter the total cost for new manufacturing equipment to be incorpo-
ny under "Doing Business As (DBA)."
rated into the project. Replacement equipment does not qualify for abate-
Column 19.
ment under Chapter 9B. New equipment that is defined as upgraded equip-
ment may qualify. Upgraded equipment is equipment that replaces existing
19d. Enter the cost of the building materials (subject to sales tax) that
equipment, and performs not only the same functions, but also an addition-
al function.
become a part of realty for new building(s) and/or new additions to existing
building(s). Other building costs (labor, engineering) are not subject to
18f. Enter the total cost for all other new personal property. Other new per-
sales tax.
sonal property may include, but is not limited to, non-manufacturing
19e. Enter the cost of new manufacturing equipment for the project. For
machinery, office equipment, computers, vehicles, etc. Only personal prop-
erty that is a depreciable item can be included.
sales tax purposes, manufacturing equipment is taxed at a lower rate.
Equipment that is purchased used from another company in an isolated
18g. Add 18a through 18f and enter total here. This is the total amount on
transaction is not subject to sales tax and should not be included.
which the initial property taxes will be based. This total must be the total
19f. Enter the cost of all other new personal property.
value of the cost or investment in the project. This total must agree with the
total investment amount in the abatement resolution and the total invest-
19g. Add 19d through 19f and enter total here.
ment amount in the abatement agreement.
Page of 4