SB73 Alabama 2024 Session

Updated Feb 23, 2026

Summary

Primary Sponsor: Jack W. WilliamsSenator
Republican
Session: Regular Session 2024
Title: Taxation, exemption for agricultural fencing
Summary: SB73 provides a five-year exemption from Alabama's sales and use tax for up to $25,000 of gross proceeds from selling agricultural fencing materials used for livestock, conditioned on an affidavit from the buyer.
What This Bill Does
It exempts up to $25,000 of gross proceeds from the sale of fencing materials used for agricultural livestock, such as posts, wires, gates, and similar items, from the state sales and use tax. The exemption runs from October 1, 2024, to September 30, 2029, and does not automatically apply to county or municipal taxes unless the local government approves it. To qualify, buyers must provide sellers with an affidavit certifying the materials are for agricultural livestock use, which relieves the seller from collecting the state tax. The Department of Revenue will provide the affidavit form to sellers.

Who It Affects
Farmers, ranchers, and other buyers of fencing materials for agricultural livestock, who would pay no state sales tax on qualifying purchases up to $25,000 during the period, provided they supply the required affidavit.
Fence-material retailers and suppliers, who would not collect state sales tax on qualifying purchases when the buyer provides the affidavit and who must handle the affidavit forms provided by the Department of Revenue.

Key Provisions
Exempts up to $25,000 of gross proceeds from the sale of fencing materials (e.g., t-posts, wood posts, barbed wire, net wire, smooth wire, gates) used for agricultural livestock from the state sales and use tax.
Effective period: October 1, 2024, through September 30, 2029.
Local (county/municipal) sales taxes are not exempt unless approved by the local governing body.
Qualifying purchases require an affidavit from the purchaser certifying the materials will be used for agricultural livestock purposes; the affidavit relieves the seller of collecting state tax.
The Department of Revenue will provide the affidavit form to sellers.
The act becomes effective October 1, 2024.

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 & Revenue