SB90 Alabama 2023 Session

Summary

Primary Sponsor

Steve LivingstonSenator

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

SB90 removes the producer value added sales and use tax exemption for products produced or processed under Chapter 2A of Title 20.

What This Bill Does

The bill adds a new Section 40-23-4.5 clarifying that the producer value added agricultural exemption does not apply to Chapter 2A products. This narrows the existing exemption that currently covers other agricultural products. As a result, Chapter 2A products would be taxed like other non-exempt products. The change would take effect immediately after the Governor signs it into law.

Who It Affects

• Producers who process or produce products under Chapter 2A of Title 20 — they would no longer qualify for the producer value added exemption for those products.
• Buyers and retailers of Chapter 2A products — these products may be taxed under the standard sales and use tax rules (potentially affecting prices).

Key Provisions

• Adds Section 40-23-4.5 to exclude products processed or produced under Chapter 2A of Title 20 from the producer value added agricultural exemption.
• Specifies that the producer value added exemption, as defined in Sections 40-23-1 and 40-23-4 (as amended by the Sweet Grown Alabama Act), does not apply to Chapter 2A products.
• Becomes effective immediately following passage and governor approval (or when it otherwise becomes 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 and revenue, exclude products under Chapter 2A of Title 20 from the producer value added sales and use tax exemption