SB127 Alabama 2015 Session

Summary

Primary Sponsor

Tom Whatley

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Agricultural equipment and machinery, sales and use tax exempt, Sec. 40-23-38, 40-23-64 repealed; Sec. 40-23-37, 40-23-63 am'd.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

SB127 would exempt farm machinery and equipment from Alabama's state sales and use tax.

What This Bill Does

Would remove the state's 1.5% sales and use tax on the sale, storage, use, and consumption of agricultural machinery and equipment used on farms. It would apply to purchases for agricultural use and would repeal existing tax administration provisions related to these items. Local sales or use taxes would still apply unless a local law or resolution specifically exempts them. The term 'agriculture' remains defined by the existing meaning in law, and the act has a stated effective date of October 1, 2014.

Who It Affects

• Farmers and farm operators would not pay state sales and use tax on the sale, storage, use, or consumption of agricultural machinery and equipment used on their farms.
• Agricultural equipment retailers and sellers would operate under the new exemption framework and experience changes in tax collection and administration, including repeal of certain prior tax administration provisions.

Key Provisions

• Exempts the sale, storage, use, and consumption of agricultural machinery and equipment used on farms from state sales and use tax.
• Repeals Sections 40-23-38 and 40-23-64 and amends Sections 40-23-37 and 40-23-63 to implement the exemption.
• Exemption does not apply to local (city/county) sales or use taxes unless locally exempted by law or resolution.
• Defines agriculture consistently with Section 41-14-51 and sets the effective date as 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