HB188 Alabama 2015 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Session

Regular Session 2015

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Agricultural equipment and machinery, sales and use tax exempt, Sec. 40-23-38, 40-23-64 repealed; Sec. 40-23-37, 40-23-63 am'd.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

HB188 would exempt the sale, use, storage, and consumption of agricultural machinery and equipment used on farms from state sales and use tax and repeal related administration provisions.

What This Bill Does

It makes purchases of agricultural machinery and equipment, including parts, attachments, and replacements, not subject to the state sales or use tax when used on a farm. Local taxes may still apply unless locally exempted or allowed by local law. The bill repeals the existing administrative provisions related to the taxation of agricultural machinery and replaces them with the exemption.

Who It Affects

• Farmers, ranchers, and other agricultural producers who buy farm machinery and equipment would not pay state sales tax on those items.
• Retailers and suppliers of agricultural machinery would not collect state sales tax on exempt farm equipment, subject to local tax rules.

Key Provisions

• Amends sections 40-23-37 and 40-23-63 to create a state sales and use tax exemption for the sale, use, storage, and consumption of agricultural machinery and equipment used in farming.
• Repeals sections 40-23-38 and 40-23-64, which previously governed the administration of the sales and use tax on agricultural machinery and equipment.
• Defines agriculture to include activities and items defined elsewhere in law and applies the exemption to parts, attachments, and replacements necessary for farming operations.
• Specifies that the exemption does not automatically remove local (county/c municipal) taxes unless those local taxes are exempted or allowed by local law.

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