January 19, 2018
By Jeff Helms
Bills clarifying the existing state sales tax exemption for agricultural products were introduced in the House and Senate this week.
Current law exempts the sale of fruit or agricultural products by a person or corporation that planted, cultivated and harvested the product. HB 242 by Rep. David Sessions, R-Grand Bay, and SB 191 by Sen. Tom Whatley, R-Auburn, specify the exemption would apply when a farmer cultivates and harvests an agricultural product on leased or rented land.
The bills also state gross receipts from the sale of pine straw products by the person who harvested the product would be exempt from state sales tax.
SB 191 has been assigned to the Senate Finance and Taxation Education Committee. HB 242 has been assigned to the House Ways and Means Education Committee. The Federation supports the bills.