Alabama 2025 Regular Session

Alabama Senate Bill SB213

Introduced

3/4/25

Refer

3/4/25

Report Pass

4/23/25

Caption

Taxation; Energy use in poultry houses, exempt from utility gross receipts and utility service use tax

Impact

If enacted, SB213 will significantly impact the poultry industry in Alabama by lowering operational costs for producers. By removing the tax burden associated with energy used in poultry houses, the bill seeks to promote agricultural production and enhance the competitiveness of Alabama's poultry sector. This exemption could encourage investment in poultry operations and help stabilize prices for consumers.

Summary

Senate Bill 213 (SB213) introduces provisions to amend existing Alabama state tax laws regarding utility gross receipts tax and utility service use tax. Specifically, it proposes to exempt the use of natural gas and electricity in poultry houses from these taxes. This change aims to alleviate the financial burden on poultry producers who rely heavily on energy consumption for the operation of their poultry houses.

Contention

While the bill may boost the poultry industry, it is likely to be met with contention regarding its implications for state revenue. Critics might raise concerns about the potential loss of tax revenue as a result of these exemptions, arguing that the state should prioritize funding for public services over industry tax breaks. Additionally, discussions surrounding equitable tax treatment across various sectors may arise, as other industries may seek similar exemptions for their energy consumption.

Latest SB213 Activity

Companion Bills

No companion bills found.

Similar Bills

CT SB00311

An Act Concerning Food Enrichment Requirements.

AL HB479

Relating to sales and use taxes; to amend Sections 40-23-1, 40-23-2, 40-23-60, and 40-23-61, Code of Alabama 1975, to define "food" and begin reducing the state sales and use tax on food on September 1, 2023; to require certain growth targets in the Education Trust Fund for future sales tax reductions on food; to establish the sales and use tax rate on food for purposes of county and municipal sales and use taxes as the existing general or retail sales and use tax rate; and to provide for the levy of sales and use tax on food by counties and municipalities.

AL SB257

Relating to sales taxes; to amend Section 40-23-1, as last amended by Acts 2022-199 and 2022-291, 2022 Regular Session, Code of Alabama 1975, Section 40-23-2, as last amended by Act 2022-346, 2022 Regular Session, Code of Alabama 1975, Section 40-23-60, as last amended by Act 2022-199, 2022 Regular Session, Code of Alabama 1975, and Section 40-23-61, Code of Alabama 1975; to define "food" and begin phasing-out the state sales and use tax on food on September 1, 2023; to require certain growth targets in the Education Trust Fund for future sales tax reductions on food; to establish the sales and use tax rate on food for purposes of county and municipal sales and use taxes as the existing general or retail sales and use tax rate; and to authorize a county and municipality to reduce the sales and use tax rate or exempt food from local sales and use taxes.