SB200 Alabama 2023 Session

Summary

Primary Sponsor

Jack W. WilliamsSenator

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 Act 2022-199, Act 2022-291, Act 2022-293, and Act 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

SB200 would make fencing materials used for agriculture livestock fencing exempt from Alabama sales tax.

What This Bill Does

It amends the sales tax exemption list to exclude from tax the gross proceeds from selling materials used to fence in agriculture livestock settings. It covers fencing items like posts, wires, gates, and similar materials. The exemption applies to the sale by retailers and suppliers, and the measure becomes effective on the first day of the third month after passage; violations would be subject to penalties.

Who It Affects

• Agricultural producers and livestock operators who buy fencing materials would not pay sales tax on those purchases.
• Retailers, distributors, and suppliers of fencing materials would be responsible for applying the exemption correctly when selling fencing products.

Key Provisions

• Adds a new exemption in Section 40-23-4 for the gross proceeds from the sale of materials used to be used as fencing in agriculture livestock applications.
• Defines the covered fencing materials to include t-posts, wood posts, barbed wire, net wire, smooth wire, standard metal gates, and other similar fencing items.
• Specifies that the exemption applies to the gross receipts from the sale of these fencing materials (and not to other unrelated items).
• Establishes penalties for violations of the exemption: fines of $500 to $2,000 and imprisonment of 6 to 12 months.
• States the act becomes effective on the first day of the third month after the governor signs it.

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