HB132 Alabama 2023 Session

Summary

Primary Sponsor

Van SmithRepresentative

Republican

Session

Regular Session 2023

Title

Relating to sales and use tax; to add a new Section 40-23-4.5, Code of Alabama 1975, to exclude products under Chapter 2A of Title 20 from the producer value added sales and use tax exemption.

Summary

HB132 would exclude products under Chapter 2A of Title 20 from the producer value added sales and use tax exemption.

What This Bill Does

The bill adds a new section to Alabama law to clarify that the producer value added exemption does not apply to products processed or produced under Chapter 2A of Title 20. If enacted, producers of Chapter 2A products would not receive the exemption, and those products would be taxed under the sales and use tax like other non-exempt items. The change would take effect immediately after the bill is passed and approved by the Governor (or becoming law otherwise).

Who It Affects

• Producers and processors whose agricultural products are under Chapter 2A of Title 20 would lose the producer value added exemption for those products.
• Purchasers and consumers of Chapter 2A products would pay sales and use tax on those products, rather than benefiting from the exemption.
• State tax revenue could be affected to the extent that tax is collected on these previously exempt products.

Key Provisions

• Adds new Section 40-23-4.5 to exclude products under Chapter 2A of Title 20 from the producer value added agricultural exemption.
• Defines that the producer value added exemption under Sections 40-23-1 and 40-23-4 shall not apply to Chapter 2A products, as amended by the Sweet Grown Alabama Act.
• States the act becomes effective immediately following passage and approval by the Governor, or otherwise becoming law.

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, producer value added products under Chapter 2A of Title 20 are excluded.