Alabama Attorney General Opinion 1979-0064

January CHARLES A. GRADDICK ATTORNEY GENERAL Date: To: File: 74- - co Ng-au *54 THE ATTORNEY GENERAL STATE OF ALABAMA • MONTGOMERY, ALABAMA 36130 060 4 OPINION OVERRULED Honorable J. F. Stegall Acting Tax Assessor Sumter County Courthouse Livingston, AL 35470 TAXATION - AD VALOREM EXEMPTION - POLLUTION CONTROL A facility engaged in the business of disposing of industrial wastes is a facility primarily engaged in the reduc- tion of air or water pollution and is exempt from ad valorem taxation. Dear Mr. Stegall: Your letter dated January 5, 1979, addressed to the Attorney General requesting an opinion regarding an exemption from ad valorem taxation has been referred to my desk for reply. Specifically, your letter asked whether or not a corporation which engages solely in the disposal of hazardous industrial wastes would be exempt from ad valorem taxation. It is my opinion that the property of a corporation which solely engages in the disposal of hazardous waste materials generated by industries in Alabama and other states would be exempt from ad valorem taxation in Alabama. As authority for my position, I would cite Code of Alabama 1975, Section 40-9-1(20), which provides: "All devices, facilities or structures, and all identifiable components thereof or materials for use therein, acquired or constructed primarily for the control, reduction or elimination of air or water pollution; (are exempt from ad valorem taxation)." While it is true that the corporation is a profit-making enterprise which engages in the business of disposing of hazardous wastes, it is also true that the property belonging to the corporation is a facility primarily constructed for the reduction of air or water pollution and thus would be entitled to the exemption from ad valorem taxation. The courts of Alabama have long held that taxing statutes "should be construed in accordance with the real intent of the statute in meaning and not so strictly as to defeat the statute's legislative purpose." Holloway v. State, 262 Alabama 437, 79 So.2d 40; State v. T. R. Miller CHARLES A. GRADDICK Attor J. BRECKENRIDGE Assistant Attorney General Honorable J. F. Stegall January 31, 1979 Page 2 Mill Company, 272 Alabama 135, 130 So.2d 185; Alabama-Georgia Syrup Company v. State, 253 Alabama 49, 42 So.2d 796; National Linen Service Corporation v. State Tax Commission, 237 Alabama 360, 180 So. 478. Therefore, it is my opinion that the property belonging to the corporation which engages solely in the disposal of hazardous wastes would be exempt from ad valorem taxation. I hope I have fully answered the question contained in your letter, and if I can be of any further service to you, please do not hesitate to contact me. Very truly yours, 040131ck