Form CO: CAAG "Application to Granting Authority for Abatement of Taxes" - Alabama

What Is Form CO: CAAG?

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.

Form Details:

  • Released on November 1, 2015;
  • The latest edition provided by the Alabama Department of Revenue;
  • Easy to use and ready to print;
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  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form CO: CAAG by clicking the link below or browse more documents and templates provided by the Alabama Department of Revenue.

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Form CO: CAAG
11/15
A
D
r
lAbAmA
epArtment of
evenue
Application to Granting Authority
for Abatement of taxes
Reset
Under Chapter 9G, Title 40, Code of Alabama 1975
Noneducational Sales and Use Taxes, Noneducational Property Taxes, and/or Utility Tax Refund
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 construction
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 a utility tax refund in accordance with the provisions of Section 40-9G-1 et seq., Code of Alabama 1975.
Sales & Use Taxes     
Property Taxes     
Utility Tax Refund
1. TYPE OF ABATEMENT APPLYING FOR:
2. PROJECT NAICS CODE:
Yes     
No
3. DO PROJECT COSTS MEET OR EXCEED $2,000,000 (CHECK APPLICABLE BOX)
4. PROJECT APPLICANT:
DBA:
5. ADDRESS OF APPLICANT:
CITY:
STATE:
ZIP CODE:
6. NAME OF CONTACT PERSON:
EMAIL ADDRESS:
TELEPHONE NUMBER:
(
)
7. DATE COMPANY ORGANIZED:
8. PHYSICAL LOCATION OF PROJECT:
CITY (IF OUTSIDE CITY LIMITS, PLEASE INDICATE):
COUNTY:
ZIP CODE:
9. BRIEF DESCRIPTION OF PROJECT:
(ATTACH A COMPLETE AND DETAILED LISTING OF PROJECT PROPERTY COSTS TO ENABLE A COST/BENEFIT ANALYSIS BY GRANTING AUTHORITY) SEE INSTRUCTIONS.
10. ESTIMATED DATE CONSTRUCTION WILL BEGIN:
11. ESTIMATED DATE CONSTRUCTION WILL BE COMPLETED:
12. ESTIMATED DATE PROPERTY WILL BE PLACED IN SERVICE:
13. HAVE BONDS BEEN ISSUED FOR PROJECT:
14. WILL BONDS BE ISSUED FOR PROJECT
No
Yes If yes, date bonds issued:
No
Yes If yes, projected date of issue:
15. ESTIMATED NUMBER
16. ESTIMATED ANNUAL
17. COST OR VALUE FOR
18. COST SUBJECT TO
XXXXXXXXXX
Estimated Investment for Project
OF NEW EMPLOYEES
PAYROLL OF NEW EMPLOYEES
PROPERTY TAX
SALES TAX
XXXXXXXXXX
INITIALLY
INITIALLY
a. Land (if donated, show market value) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17a
XXXXXXXXXX
b. Existing Building(s) (if any) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17b
YEAR 1
YEAR 1
c. Existing Personal Property (if any) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17c
d. New Building(s) and/or New Additions to Existing Building(s)
YEAR 2
YEAR 2
(18d = building materials only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17d
18d
e. Capitalized Renovations. Rehabilitation and/or Maintenance to
YEAR 3
YEAR 3
Existing Building(s)
Market value of existing building(s):
(See instructions)
(18e = building materials only). .
17e
18e
This form may be used as the application
f. New Manufacturing Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17f
18f
to the granting authority required by
g. Replacement and/or Upgraded Manufacturing Machinery (See instructions) . .
17g
18g
Section 40-9B-6(a), Code of Alabama
1975. The information requested here is
h. Other New Personal Property
required by Section 40-9B-6 and Section
(non-mfg machinery, office equipment, computers, etc.) . . . . . . . . . . . . . . . . . .
17h
18h
40-2-11(7), Code of Alabama 1975.
i. Replacement and/or Upgraded Other Personal Property (See instructions)
(non-mfg machinery, office equipment, computers, etc.) . . . . . . . . . . . . . . . . . .
17i
18i
j. TOTALS (PROPERTY TAX TOTAL MUST EQUAL TOTAL
$ 0
$ 0
PROJECT INVESTMENT. SALES TAX TOTAL WILL BE LESS.) . . . . . . . . . . .
17j
18j
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 40-9G-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. I also
hereby affirm that no project agreement has been or will be entered into with the Governor of Alabama for the provision of other incentives for this project.
_____________________________________________________
NAME (PRINT)
_____________________________________________________
_____________________________________________________ _____________________________
SIGNATURE
TITLE
DATE
Form CO: CAAG
11/15
A
D
r
lAbAmA
epArtment of
evenue
Application to Granting Authority
for Abatement of taxes
Reset
Under Chapter 9G, Title 40, Code of Alabama 1975
Noneducational Sales and Use Taxes, Noneducational Property Taxes, and/or Utility Tax Refund
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 construction
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 a utility tax refund in accordance with the provisions of Section 40-9G-1 et seq., Code of Alabama 1975.
Sales & Use Taxes     
Property Taxes     
Utility Tax Refund
1. TYPE OF ABATEMENT APPLYING FOR:
2. PROJECT NAICS CODE:
Yes     
No
3. DO PROJECT COSTS MEET OR EXCEED $2,000,000 (CHECK APPLICABLE BOX)
4. PROJECT APPLICANT:
DBA:
5. ADDRESS OF APPLICANT:
CITY:
STATE:
ZIP CODE:
6. NAME OF CONTACT PERSON:
EMAIL ADDRESS:
TELEPHONE NUMBER:
(
)
7. DATE COMPANY ORGANIZED:
8. PHYSICAL LOCATION OF PROJECT:
CITY (IF OUTSIDE CITY LIMITS, PLEASE INDICATE):
COUNTY:
ZIP CODE:
9. BRIEF DESCRIPTION OF PROJECT:
(ATTACH A COMPLETE AND DETAILED LISTING OF PROJECT PROPERTY COSTS TO ENABLE A COST/BENEFIT ANALYSIS BY GRANTING AUTHORITY) SEE INSTRUCTIONS.
10. ESTIMATED DATE CONSTRUCTION WILL BEGIN:
11. ESTIMATED DATE CONSTRUCTION WILL BE COMPLETED:
12. ESTIMATED DATE PROPERTY WILL BE PLACED IN SERVICE:
13. HAVE BONDS BEEN ISSUED FOR PROJECT:
14. WILL BONDS BE ISSUED FOR PROJECT
No
Yes If yes, date bonds issued:
No
Yes If yes, projected date of issue:
15. ESTIMATED NUMBER
16. ESTIMATED ANNUAL
17. COST OR VALUE FOR
18. COST SUBJECT TO
XXXXXXXXXX
Estimated Investment for Project
OF NEW EMPLOYEES
PAYROLL OF NEW EMPLOYEES
PROPERTY TAX
SALES TAX
XXXXXXXXXX
INITIALLY
INITIALLY
a. Land (if donated, show market value) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17a
XXXXXXXXXX
b. Existing Building(s) (if any) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17b
YEAR 1
YEAR 1
c. Existing Personal Property (if any) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17c
d. New Building(s) and/or New Additions to Existing Building(s)
YEAR 2
YEAR 2
(18d = building materials only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17d
18d
e. Capitalized Renovations. Rehabilitation and/or Maintenance to
YEAR 3
YEAR 3
Existing Building(s)
Market value of existing building(s):
(See instructions)
(18e = building materials only). .
17e
18e
This form may be used as the application
f. New Manufacturing Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17f
18f
to the granting authority required by
g. Replacement and/or Upgraded Manufacturing Machinery (See instructions) . .
17g
18g
Section 40-9B-6(a), Code of Alabama
1975. The information requested here is
h. Other New Personal Property
required by Section 40-9B-6 and Section
(non-mfg machinery, office equipment, computers, etc.) . . . . . . . . . . . . . . . . . .
17h
18h
40-2-11(7), Code of Alabama 1975.
i. Replacement and/or Upgraded Other Personal Property (See instructions)
(non-mfg machinery, office equipment, computers, etc.) . . . . . . . . . . . . . . . . . .
17i
18i
j. TOTALS (PROPERTY TAX TOTAL MUST EQUAL TOTAL
$ 0
$ 0
PROJECT INVESTMENT. SALES TAX TOTAL WILL BE LESS.) . . . . . . . . . . .
17j
18j
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 40-9G-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. I also
hereby affirm that no project agreement has been or will be entered into with the Governor of Alabama for the provision of other incentives for this project.
_____________________________________________________
NAME (PRINT)
_____________________________________________________
_____________________________________________________ _____________________________
SIGNATURE
TITLE
DATE
for Abatement of Taxes (Form CO: CAAG)
Instructions for Preparing Application to Granting Authority
Under Chapter 9G of Title 40, Code of Alabama 1975
GENERAL INSTRUCTIONS
• Any plant, property or facility for the production of biofuel as such term is defined in Code
of Alabama 1975 Section 2-2-90(c)(2).
Chapter 9G, Title 40, Code of Alabama 1975, provides for an abatement of all state and
local noneducational property taxes, all construction related transaction taxes (sales and
• Research & Development Facility – An establishment of original investigations undertak-
use taxes), except those local construction related transaction taxes levied for educational
en on a systematic basis to gain new knowledge or the application of research findings
purposes or for capital improvements for education, and/or a utility tax refund for qualifying
or other scientific knowledge to create new or significantly improved products or
projects. A qualifying project under Chapter 9G is any project that 1) spends at least $2M
processes.
in capital expenditures as part of any addition, expansion, improvement, renovation, re-
opening, or rehabilitation of a facility, or replacement of any existing equipment or tangible
• Headquarters Facility – The national or regional headquarters for a company that con-
personal property, 2) predominately involves an approved activity as defined below, and 3)
ducts significant business operations outside the state and that will serve as the principal
for which no project agreement has been entered into with the Governor for the provision
office of the company’s principal operating officer with chief responsibility for the daily
or other incentives.
business operations of the company.
This form is to be submitted to the granting authority for consideration in granting an abate-
• Any of the 11 targeted business sectors under the Accelerate Alabama Strategic
ment of noneducational sales and use taxes and/or noneducational property taxes.
Economic Development Plan adopted in January 2012 by the Alabama Economic
Chapter 9G sales and use tax abatements may be granted by the same granting authority
Development Alliance, created by Executive Order Number 21 of the Governor on July
authorized to grant abatements under Section 40-9B-5(b)(1). Chapter 9G property tax
18, 2011, which include Advanced Manufacturing in Aerospace/Defense, Automotive,
abatement may be granted as follows: county noneducational property taxes may be abat-
Agricultural Products/Food Production, Steel/Metal, Forestry Products and Chemicals;
ed only with the consent by resolution of the governing body of the county; municipal none-
Technology in Biosciences, Information Technology and Enabling Technologies;
ducational property taxes may be abated only with the consent by resolution of the govern-
Distribution/Logistics; and Corporate Operations.
LINE BY LINE INSTRUCTIONS
ing body of the municipality; and State noneducational property taxes may be abated only
with the consent of the Governor. The governing body of a county or a municipality may
separately authorize one or more public industrial authorities to provide by resolution for
Item 1. Indicate the type(s) of abatement(s) being requested.
such consent on its behalf.
Sales and Use Taxes – Chapter 9G, Title 40, Code of Alabama 1975, provides for the
Chapter 9G abatements are subject to and shall follow the same procedures, provisions,
abatement of certain noneducational sales and use taxes imposed by Chapter 23 of Title
limitations and definitions under Section 40-9B-1 et al., Code of Alabama 1975 with the fol-
40, Code of Alabama 1975. The abatement applies to the tangible personal property and
lowing exceptions. For sales and use tax purposes, capitalized repairs, rebuilds, mainte-
taxable services incorporated into the project, to include capitalized repairs, rebuilds, main-
nance, and replacement equipment shall qualify for abatement. For property tax purposes,
tenance, and replacement equipment, the cost of which may be added to the capital
capitalized repairs, rebuilds, maintenance, and replacement equipment shall qualify for
account with respect to the project. However, only the state and local noneducational sales
abatement and the amount of the property tax abatement for such property will be equal to
and use taxes may be abated. No sales and use tax abatement shall extend beyond the
the excess amount of property taxes owed for the real or personal property that is being
date the project is placed in service. The abatement may be granted by the granting
replaced, upgraded or improved, for the applicable tax year that is greater than the amount
authority.
of property taxes owed on such property for the tax year immediately before the qualifying
project was placed in service.
Property Taxes – Chapter 9G, Title 40, Code of Alabama 1975, provides for the abatement
of noneducational property taxes imposed by the state, counties, municipalities and other
A complete and detailed listing of any and all project costs for the addition, expan-
taxing jurisdictions in Alabama. For any property abatement that is granted, the noneduca-
sion, improvements, renovation, re-opening, or rehabilitation of a facility or replace-
tional municipal taxes can only be abated by the City Government, noneducational county
ment of any existing equipment should be attached to this application in order for the
taxes can only be abated by the County Government, and state taxes can only be abated
granting authority to make a cost/benefit analysis in accordance with Section 40-9B-
by the Governor. The governing body of the municipality and county can authorize a public
6(a). For personal property abatement purposes, a listing of all existing personal
industrial authority to provide by resolution for such consent on its behalf. The amount of
property, including manufacturing equipment, non-manufacturing equipment, office
the property tax abatement will be equal to the excess amount of property taxes owed for
equipment, and computers, affected by this project must be attached to this applica-
the property for the applicable tax year that is greater than the amount of property taxes
tion and must be listed by original acquisition date, original acquisition cost and
owed on such property for the tax year immediately before the qualifying project was placed
description of asset as reported on Form ADV-40 as of the October 1 lien date imme-
in service.
diately preceding the date the project is placed in service. For real property abate-
ment purposes, attach a copy of the assessment sheet, as provided by the tax
Utility Tax Refund – Chapter 9G, Title 40, Code of Alabama 1975, provides for an abate-
assessing official, that provides the market value of the existing property affected by
ment of utility taxes imposed by Ala. Code Sections 40-21-82 and 40-21-102. The abate-
this project as of the Oct 1 lien date immediately preceding the date the project is
ment is a refund of utility taxes paid for up to ten years. The refund shall be equal to the
placed in service. The application will not be complete if the required real and/or per-
utility taxes paid, minus the utility taxes paid on average during the three tax years immedi-
sonal property listing(s)s is not attached.
ately before the qualifying project was placed in service and can only be granted by the
Governor based on the recommendation by the Alabama Department of Commerce. For
If you have any questions about this form or the abatement of taxes in general,
more information, contact the Incentives Manager at the Alabama Department of
please contact the Alabama Department of Revenue at (334) 242-1175.
APPROVED BUSINESS ACTIVITIES
Commerce at 334-242-0400.
FOR CHAPTER 9G ABATEMENTS
Item 2. If the predominant business activity is an approved business activity as defined in
Section 40-9G-1(a), enter the 2007 North American Industrial Classification System
• Any trade or business in the 2012 North American Industrial Classification System
(NAICS) code for the project.
(NAICS), promulgated by the Executive Office of the President of the United States,
Office of Management and Budget as: 1133, 115111, 2121, 22111, 221330, 31, (except
Item 3. Indicate if project costs meet or exceed $2,000,000 in accordance with Section 40-
National Industry 311811), 32, and 33, 423, 424, 482, 4862, 48691, 48699, 48819, 4882,
9G-1(4).
4883 (other than 48833), 493, 511, 5121 (other than 51213), 51221, 517, 518, 51913,
52232, 54133, 54134, 54138, 5415, 541614, 5417, 55 (if not for the production of elec-
Item 4. Enter the name of the private user requesting abatement. If project is doing busi-
tricity), 561422 (in bound call centers only), 562213, 56291, 56292, 611512, 927 or
ness under another name, also enter the name of the company under "Doing Business As
92811.
(DBA)."
Item 5. Enter the address of the private user requesting abatement.
applicable tax year that is greater than the amount of taxes owed for the existing property
for the tax year immediately before the qualifying project is placed in service. Attach a copy
Item 6. Enter the name, email address, and telephone number of the person to which all
of the assessment sheet, as provided by the tax assessing official, that provides the market
correspondence should be directed regarding the abatement.
value of the existing property affected by this project as of the Oct 1 lien date immediately
preceding the date the project is placed in service, and include the market value in the
Item 7. Enter the date the company was organized.
space provided.
Item 8. Enter the physical location of the project. Please include a detailed location, includ-
17f. Enter the total cost for new manufacturing equipment to be incorporated into the pro-
ing the City, County and Zip Code.
ject. Replacement equipment and new equipment that is defined as upgraded equipment
should be included on 17g.
Item 9. Describe the type of business that the project will be engaged in. For projects that
do not require a NAICS code, provide a detailed description that will identify the activities
17g. Enter the total costs for replacement equipment and/or upgraded equipment.
as qualifying activities. Attach a complete and detailed listing of any and all project costs for
Upgraded equipment is equipment that replaces existing equipment, and performs not only
the addition, expansion, improvements, renovation, re-opening, or rehabilitation of a facility
the same functions, but also an additional function. A listing of all existing manufacturing
or replacement of any existing equipment in order for the granting authority to make a
equipment affected by this project must be attached to this application and must be listed
cost/benefit analysis in accordance with the statute.
by original acquisition date, original acquisition cost and description of asset as reported
on Form ADV-40 as of the October 1 lien date immediately preceding the date the project
Item 10. Enter the estimated date the construction of the project will begin.
is placed in service.
Item 11. Enter the estimated date the construction of the project will be completed.
17h. Enter the total cost for all other new personal property. Other new personal property
may include, but is not limited to, non-manufacturing machinery, office equipment, comput-
Item 12. Enter the estimated date the project will be placed in service. If revenue bonds
ers, vehicles, etc. Replacement and/or upgraded personal property costs should be includ-
are issued, "placed in service," for property tax purposes, is determined as of the date of
ed on 17i. Only personal property that is a depreciable item can be included.
the initial issuance of such bonds. Otherwise, "placed in service" for sales and use tax and
property tax purposes is determined as the later of 1) the date on which title to the property
17i. Enter the total cost for all other new property that is replacing and/or upgrading existing
was acquired by or vested in a county, city, or public authority, or 2) the date on which the
personal property. Other new personal property may include, but is not limited to, non-man-
property is or becomes owned, for federal income tax purposes, by a private user.
ufacturing machinery, office equipment, computers, vehicles, etc. Only personal property
that is a depreciable item can be included. A listing of all existing other personal property
Item 13. Indicate if bonds have been issued in financing the project. If bonds have been
affected by this project must be attached to this application and must be listed by original
issued, enter the issuance date.
acquisition date, original acquisition cost and description of asset as reported on Form
ADV-40 as of the October 1 lien date immediately preceding the date the project is placed
Item 14. Indicate if bonds will be issued for financing the project. If bonds will be issued,
in service.
enter the projected issuance date.
17j. Add 17a through 17i and enter total here. This is the total amount on which the initial
Column 15. Enter the estimated number of new employees to be hired at the project. The
property taxes will be based. This total must be the total value of the cost or investment in
law requires the number of employees to be employed at the project initially and in each of
the project. This total must agree with the total investment amount in the abatement reso-
the succeeding three years.
lution and the total investment amount in the abatement agreement.
Column 16. Enter the estimated annual payroll for employees at the project. The law
Column 18.
requires the estimated payroll of new employees initially and in each of the succeeding
three years.
18d. Enter the cost of the building materials (subject to sales tax) that become a part of
realty for new building(s) and/or new additions to existing building(s). Other building costs
Column 17.
(labor, engineering) are not subject to sales tax.
17a. Enter all costs or value for project land. If land is donated, enter the market value of
18e. Enter the cost of the building materials (subject to sales tax) for the capitalized
the land.
improvements, renovations, remodeling, re-opening, rehabilitation and/or maintenance that
become a part of realty of the existing building(s). Other building costs (labor, engineering)
17b. Enter all costs or value for existing building(s), if any. Only real property not previously
are not subject to sales tax.
placed in service by the private user or a related party can be included. Capitalized reno-
vations, remodeling, rehabilitation and/or maintenance to a building that has been placed in
18f. Enter the cost of new manufacturing equipment for the project. For sales tax purposes,
service by the owner of the property shall be included on line 17e.
manufacturing equipment is taxed at a lower rate. Equipment that is purchased used from
another company in an isolated transaction is not subject to sales tax and should not be
17c. Enter all costs or value for existing personal property to be incorporated into project.
included. Replacement and/or upgraded manufacturing equipment should be included on
Only personal property not previously placed in service in Alabama by the private user or a
18g.
related party can be included. If a private user is including existing equipment from outside
of Alabama, the existing equipment should be entered here at its original cost.
18g. Enter the cost of replacement and/or upgraded manufacturing equipment.
17d. Enter the total cost for new building(s) and/or new additions to existing building(s).
18h. Enter the cost of all other new personal property. Replacement and/or upgraded other
Total cost includes building materials, construction costs, engineering costs, etc. Costs
personal property should be included on 18i.
associated with improving, renovating, remodeling, re-opening or rehabilitating an existing
facility(ies) of an operating industrial or research enterprise should be included on 17e.
18i. Enter the cost of all other personal property that is replacing and/or upgrading existing
personal property.
17e. Enter the total costs for capitalized improvements, renovations, remodeling, re-open-
ing, rehabilitation, and/or maintenance to existing building(s). The amount of property taxes
18j. Add 18d through 18i and enter total here.
that can be abated shall be equal to the excess amount of property taxes owed for the
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