SB191 Alabama 2018 Session

Summary

Primary Sponsor

Tom Whatley

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

SB 191 would clarify that the sales tax exemption for fruit and agricultural products applies to the producer who planted, cultivated, and harvested them when the seller owns or leases the land, and would align that exemption with use tax rules.

What This Bill Does

It specifies that the exemption is for the seller who actually planted, cultivated, and harvested the fruit or agricultural products, provided the land is owned or leased by that seller. It also incorporates the sales tax exemptions into the use tax law, making the same exemptions apply to use tax. The bill would amend Sections 40-23-4 and 40-23-62 to implement these changes and would take effect immediately after passage and governor’s approval.

Who It Affects

• Farmers and other agricultural producers who planted, cultivated, and harvested fruit or agricultural products and own or lease the land where the sale occurs; they would be eligible for the sales tax exemption on these sales.
• Businesses and individuals handling use tax compliance in Alabama; the exemptions would be mirrored in use tax law, expanding or aligning how exemptions apply to use tax.
• Consumers or buyers purchasing fruit or agricultural products from those producers; they would benefit from the sales tax exemption at the point of sale.

Key Provisions

• Defines the exemption as applying to the sale of fruit or agricultural products by the person or corporation that planted, cultivated, and harvested the product, when the land is owned or leased by the seller.
• Incorporates the sales tax exemptions into the use tax framework, so the same exemptions apply to use tax.
• Amends Code Sections 40-23-4 and 40-23-62 to implement these changes, effective immediately upon passage and gubernatorial approval.
• Maintains the general scope of exemptions but specifically clarifies who may claim the fruit/agriculture exemption and how it interacts with land ownership/lease.

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