HB412 Alabama 2022 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Van SmithRepresentative
Republican
Session: Regular Session 2022
Title: Sales and use tax, agricultural products, producer value added agricultural products exempt from sales tax, Sec. 40-23-1, 40-23-4 am'd.
Summary: HB412 would exempt producer value added agricultural products from Alabama sales tax when sold by the producer, the producer’s family, or the producer’s employees.
What This Bill Does
The bill amends Sections 40-23-1 and 40-23-4 to create an exemption from sales tax for 'producer value added agricultural products.' These are fruits or other agricultural products that have undergone some degree of further processing by the original producer (examples include whole cuts of meat, bound flowers, jams, jellies, and boiled or roasted peanuts). The exemption applies when the sale is made by the producer, the producer's immediate family, or the producer's employees. It is titled the 'Sweet Grown Alabama Act' and takes effect immediately after passage; penalties for violations of the section would apply as specified in the law.

Who It Affects
Producers of value-added agricultural products (and their immediate family or employees) who sell these products would have to collect and remit sales tax exemptions on those sales.
Consumers purchasing producer value added agricultural products would not pay sales tax on those exempted products.

Key Provisions
Amendment of Sections 40-23-1 and 40-23-4 to exempt 'Producer Value Added Agricultural Products' from sales tax.
Definition of 'Producer Value Added Agricultural Products' as fruits or other agricultural products that have undergone some degree of further processing by the original producer (examples include whole cuts of meat, bound cut flowers, jams, jellies, boiled or roasted peanuts).
Exemption applies to sales made by the producer, the producer's immediate family, or the producer's employees.
Official name: 'Sweet Grown Alabama Act.'
Immediate effectiveness after passage and approval by the Governor.
Penalties for violations of the section: fines ranging from $500 to $2,000 and imprisonment from six months to one year in county jail.

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