Certain Agricultural Products Exempt from Sales and Use Tax in Alabama

The governor of Alabama, Kav Ivey (R) recently signed various bills applying to tax relief, one including agricultural products being exempt from sales and use tax under certain circumstances. On April 11, 2022, Alabama Senate Bill 274 was signed into law as Act 2022-291.The sales of producer value added agriculture products are exempt from sales and use tax if these sales are made by the producer, immediate family, or an employee. Examples cited in the legislation include: whole cuts of meat, bound cut flowers, jams, jellies, or boiled or roasted peanuts. This law will go into effect starting October 1, 2022 until September 20, 2027. (Alabama Senate, S.B. 274; Act 2022-291, effective October 1, 2022)  

Posted on April 28, 2022