Legislation clarifying the sales tax exemption for agricultural products passed the House Agriculture and Forestry Committee this week.

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. 

The companion bill is SB 191 by Sen. Tom Whatley, R-Auburn. It has been assigned to the Senate Finance and Taxation Education Committee.