SB418 Alabama 2017 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2017

Title

Sales and use tax, fruit or agricultural products, exemption to include sale of products by a person or corporation that planted, cultivated, or harvested the product, Sec. 40-23-6 am'd.

Summary

SB418 expands the state sales tax exemption for fruit or agricultural product sales to include sales by the person or corporation that planted, cultivated, or harvested the product.

What This Bill Does

It amends Section 40-23-4 to explicitly include sales by producers who planted, cultivated, or harvested in the exemption. This means the gross proceeds from selling those products would be exempt from state sales tax, even if harvesting occurred without planting or cultivation. The change does not alter tax rates or other exemptions already listed in the section. The act takes effect immediately after the governor signs it into law.

Who It Affects

• Farmers, growers, and other agricultural producers in Alabama who planted, cultivated, or harvested fruit or other agricultural products, whose sales of those products would be exempt from state sales tax.
• Sellers who harvest but did not plant or cultivate those products, who would now be eligible for the sales tax exemption on their sales of harvested products.

Key Provisions

• Amends Section 40-23-4 to add 'or harvested' to the exemption for sale of fruit or agricultural products by the producer.
• Specifies that the exemption applies to gross receipts from the sale of fruit or agricultural products by the person or corporation that planted, cultivated, or harvested the product.
• Effective immediately following the governor's approval.

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