HB417 Alabama 2020 Session

Summary

Primary Sponsor

Dexter Grimsley

Democrat

Session

Regular Session 2020

Title

Sales and use tax, dog sellers, gross proceeds of insecticides, and medicine used for agricultural purposes or by dog vendor and dog food used by dog vendor whose principal business is selling dogs, Act 2019-444, 2019 Reg. Sess., am'd; Sec. 40-23-4 am'd.

Summary

HB417 would exempt dog vendors’ purchases of insecticides, medicines, and prepared dog food from Alabama sales and use tax.

What This Bill Does

The bill amends Section 40-23-4 to remove sales tax on the gross proceeds of insecticides, medicines, and prepared dog food when the buyer is a dog vendor whose main business is selling dogs. It defines a dog vendor as a business whose primary activity is selling, adopting, or transferring dogs and that collects sales tax on those dog-related transactions. It also sets an effective date for the change, starting the first day of the third month after the bill becomes law.

Who It Affects

• Dog vendors whose primary business is to sell, adopt, or transfer ownership of dogs, because their purchases of insecticides, medicines, and prepared dog food would no longer be taxed.
• State and local tax collections may be affected, since these purchases would be exempt from sales and use taxes when made by dog vendors.

Key Provisions

• Amends Section 40-23-4 to exempt the gross proceeds from the sale of insecticides, medicines, and prepared dog food purchased by a dog vendor from sales and use taxes.
• Defines 'dog vendor' as any person or entity whose primary business is to sell, adopt, or transfer ownership of dogs and who collects sales tax on those dog transactions.
• Effective date: the act becomes law on the first day of the third month following its passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation