Alabama Senate Bill SB94

Alabama 2024 Regular Session

• Introduced: 2/13/24
• Report Pass: 4/10/24
• Refer: 2/13/24
• Engrossed: 4/18/24
• Report Pass: 5/1/24
• Refer: 4/18/24
• Enrolled: 5/8/24
• Passed: 5/20/24

Caption

Taxation; exempting the gross proceeds of honeybees and their byproducts from sales tax

Impact

If passed, SB94 would relieve honey bee producers from state sales taxes on their products, potentially stimulating the local economy related to bee farming and related agricultural activities. However, the bill does not exempt local sales and use taxes unless agreed upon by local governing bodies. This aspect could lead to potential disparities in tax relief for honey bee farmers across different jurisdictions in Alabama, depending on local government decisions.

Summary

SB94, introduced by Senator Carnley, proposes a temporary exemption from the Alabama state sales and use tax for honey bees and their byproducts, effective from October 1, 2024, to September 30, 2029. The bill specifically defines honeybee byproducts to include materials such as propolis, royal jelly, beeswax, honeycombs, bee venom, and pollen, although it explicitly excludes honey itself from the exemption. The intent of the bill is to support the beekeeping industry and promote agricultural practices beneficial for local economies.

Sentiment

The general sentiment surrounding the bill appears to be positive among those in the agricultural sector, particularly among beekeepers who stand to benefit directly from the tax relief. Supporters argue that this exemption would enhance the viability of small farms and beekeeping operations, which are essential for pollination and honey production. On the other hand, some legislators and local government officials express concerns about the potential loss of tax revenue at the local level, raising questions about the financial impact of the exemption on community budgets.

Contention

The most notable points of contention revolve around the specific exclusion of honey from the exemption and the variability of local tax application. Critics argue that not extending the exemption to honey could undermine the overall economic benefits intended by the bill, as honey production is a significant aspect of beekeeping. Additionally, the conditional exemption of local taxes raises concerns about the uniformity of the bill's benefits, leading to a potential patchwork of regulations and tax treatments across the state.