HB389 Alabama 2012 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2012

Title

Taxation, certain industries sales and use tax exemption repealed, Secs. 40-23-4, 40-23-62 am'd

Summary

HB389 repeals multiple sales and use tax exemptions in Alabama, removing tax breaks for various industries.

What This Bill Does

If enacted, HB389 would repeal a long list of tax exemptions in sections 40-23-4 and 40-23-62, so those goods and activities would become subject to Alabama sales and use tax. It would affect agricultural inputs (like fertilizer, seeds, and baby chicks), farm and livestock products, pest control chemicals, fuels and supplies used on ships and in aviation, and certain fishing-related activities, among others. The changes would take effect on the first day of the third month after the governor signs the bill.

Who It Affects

• Agricultural producers and input suppliers would face higher costs because fertilizer, seeds, and pest control products would no longer be exempt from sales tax.
• Businesses in transportation, shipping, fishing, aviation, and manufacturing that rely on tax exemptions for fuels, equipment, and related inputs would face higher costs as those exemptions are repealed.

Key Provisions

• Repeals the agricultural fertilizer exemption, making fertilizer sales taxable for agricultural use.
• Repeals the exemption for seeds for planting purposes and baby chicks/poults, making these items taxable.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation