HB242 Alabama 2018 Session

Summary

Primary Sponsor

David SessionsSenator

Republican

Session

Regular Session 2018

Title

Sales and use taxes, exemption for sale of fruit and agricultural products further provided for, all sales tax exemptions incorporated in use tax, Secs. 40-23-4, 40-23-62 am'd.

Summary

This bill expands the sales tax exemption for selling fruit and agricultural products to include the producer who planted, cultivated, and harvested them and makes the same exemptions apply to use tax.

What This Bill Does

It specifies that the sales tax exemption for fruit or agricultural products covers the producer who planted, cultivated, and harvested the goods, as long as the land is owned or leased by the seller. It also incorporates these sales tax exemptions into the use tax law, so the same items would be exempt from use tax. The change helps align how these exemptions work for both sales tax and use tax and reduces tax on these specific transactions.

Who It Affects

• Producers/sellers who planted, cultivated, and harvested fruit or agricultural products (land owned or leased by the seller) who would receive the sales tax exemption on their sales.
• Buyers and users who would otherwise owe use tax on these same fruit or agricultural products, as the exemptions are mirrored in use tax law.

Key Provisions

• Adds a sales tax exemption for the sale of fruit or agricultural products by the person or corporation that planted, cultivated, and harvested the products, when the land is owned or leased by the seller.
• Incorporates the sales tax exemptions contained in sections 40-23-4 and 40-23-4.1 into the use tax law, so the same exemptions apply to use tax (section 40-23-62).

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