SB24 Alabama 2016 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2016

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Agricultural equipment and machinery, sales and use tax exempt, Sec. 40-23-38, 40-23-64 repealed; Sec. 40-23-37, 40-23-63 am'd.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

SB24 would exempt the sale, use, storage, and consumption of agricultural machinery and equipment on farms from Alabama's state sales and use tax, repeal related administrative provisions, and take effect October 1, 2016.

What This Bill Does

If passed, the bill would remove the 1.5% state sales or use tax on agricultural machinery and equipment used on farms. The exemption would apply to the sale, use, storage, and consumption of such machinery and related parts and attachments used in farming. It would repeal existing administration provisions (sections 40-23-38 and 40-23-64) related to how the tax is collected and administered. Local taxes could still apply unless local law or a local governing body resolution provides an exemption.

Who It Affects

• Farmers, ranchers, and agricultural businesses who purchase or use farm machinery and equipment would no longer owe the state sales or use tax on those purchases or uses.
• Retailers and dealers of agricultural machinery and equipment would no longer collect the state sales or use tax from buyers and would need to adjust their pricing/tax collection practices.

Key Provisions

• Exempts sale, use, storage, and consumption of agricultural machinery and equipment used on farms from the state sales and use tax (1.5% tax) and related components/attachments.
• Repeals the administration provisions in Sections 40-23-38 and 40-23-64 pertaining to agricultural machinery tax administration.
• Amends Sections 40-23-37 and 40-23-63 to codify the exemption for farm-related machinery and equipment, including use on farms and related storage/consumption.
• Effective date: October 1, 2016; exemption may not apply to local sales/use taxes unless locally exempted or approved by local governing body.

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