HB86 Alabama 2014 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Session

Regular Session 2014

Title

Agricultural equipment and machinery, sales and use tax exempt, Sec. 40-23-38, 40-23-64 repealed; Sec. 40-23-37, 40-23-63 am'd.

Summary

HB86 would exempt the sale, use, storage, and consumption of agricultural machinery and equipment used on Alabama farms from the state sales and use tax, effective October 1, 2014.

What This Bill Does

It removes the state sales and use tax on farm machinery and equipment purchased for use on farms, including parts and replacements needed for operation. It repeals existing tax administration provisions and replaces them with an exemption framework, while noting that local taxes may still apply unless exempted by local law. The bill takes effect October 1, 2014.

Who It Affects

• Farmers and farm operations in Alabama who purchase or use agricultural machinery, equipment, and related parts/replacements would no longer pay state sales and use tax.
• Retailers and sellers of agricultural machinery and equipment, and local governments, as they adjust to the exemption from state tax and the potential continued applicability of local taxes.

Key Provisions

• Exempts from state sales and use tax the sale, use, storage, and consumption of agricultural machinery and equipment used on farms, including parts, attachments, and replacements necessary for operation; local use taxes may still apply unless exempted by local law.
• Repeals Sections 40-23-38 and 40-23-64 and amends Sections 40-23-37 and 40-23-63 to implement the exemption, with an effective date of October 1, 2014.

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

Subjects

Agriculture