HB242 Alabama 2018 Session

Under existing law, an exemption from the state sales tax is provided for the sale of fruit or agricultural products by a person or corporation that planted, cultivated, and harvested the fruit or agricultural products. Under existing law, sales tax exemptions and use tax exemptions are not consistent.

This bill would specify that the sales tax exemption would apply to the sale of fruit or agricultural products by the person or corporation that planted or cultivated and harvested the fruit or agricultural products. This bill would also incorporate the sales tax exemptions into the use tax law.

To amend Sections 40-23-4 and 40-23-62, Code of Alabama 1975, as amended by Act 2017-397 of the 2017 Regular Session, relating to the state sales tax; to specify that the exemption for the sale of fruit or agricultural products by the person or corporation that planted or cultivated and harvested the fruit or agricultural products, when the land is owned or leased by the seller; and to incorporate sales tax exemptions provided in Sections 40-23-4 and 40-23-4.1, Code of Alabama 1975, into the use tax law.