HB330 Alabama 2023 Session

Summary

Primary Sponsor

Danny CrawfordRepresentative

Republican

Session

Regular Session 2023

Title

Relating to sales tax exemptions; to amend Section 40-23-4, Code of Alabama 1975, as last amended by Acts 2022-199, 2022-291, 2022-293, and 2022-373, 2022 Regular Session, to exempt from sales tax the gross proceeds from the sale of materials to be used as fencing in agriculture livestock applications.

Summary

HB330 would exempt the gross proceeds from selling fencing materials used for agricultural livestock fencing from Alabama sales tax.

What This Bill Does

It adds a new exemption to the existing sales tax exemptions in Section 40-23-4 for fencing materials purchased to be used in agriculture livestock fencing. When fencing materials (such as t-posts, wood posts, barbed wire, net wire, smooth wire, gates, and similar items) are sold for farm fencing, those sales would not be taxed by the state. The exemption applies to the sale of the materials themselves; it does not specify an exemption for labor or installation. The law would take effect on the first day of the third month after the bill is passed and Governor approves it.

Who It Affects

• Farmers, ranchers, and other agricultural operators in Alabama who purchase fencing materials for livestock fencing would not pay state sales tax on those materials.
• Retailers, hardware stores, and fencing suppliers in Alabama that sell fencing materials to agricultural customers would see the tax exemption apply to those sales.

Key Provisions

• Adds a new exemption to Section 40-23-4 for the gross proceeds from the sale of fencing materials purchased to be used as fencing in agriculture livestock applications.
• Examples of eligible fencing materials include t-posts, wood posts, barbed wire, net wire, smooth wire, standard metal gates, and other like materials.
• The exemption applies to the sale of materials themselves; installation or labor is not specified as exempt.
• Effective date is the first day of the third month after passage and Governor's 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

Tax exemption, to provide sales tax exemption for livestock fencing