Legislation clarifying the sales tax exemption for agricultural products unanimously won final passage Tuesday in the Alabama Senate.
HB 242 by Rep. David Sessions, R-Grand Bay, specifies Alabama’s current state sales tax exemption applies when a farmer cultivates and harvests an agricultural product on leased or rented land. The bill also states gross receipts from the sale of pine straw products by the person who harvested the product would be exempt from state sales tax.
Sen. Tom Whatley, R-Auburn, sponsored the Senate version. Gov. Kay Ivey is expected to sign the legislation into law.