Alabama 2022 Regular Session

Alabama Senate Bill SB274

Introduced

3/1/22

Refer

3/1/22

Engrossed

3/30/22

Refer

3/30/22

Enrolled

4/6/22

Chaptered

4/6/22

Passed

4/6/22

Caption

Sales and use tax, agricultural products, producer value added agricultural products exempt from sales tax, Sec. 40-23-1, 40-23-4 am'd.

Impact

If enacted, SB274 is likely to significantly affect the financial dynamics of local agricultural businesses by promoting the sale of value-added products without the additional cost of sales tax. This is expected to enhance profitability for farmers and processors who utilize locally grown agricultural products, thus stimulating growth in Alabama's agricultural economy. By reducing barriers to market entry, the bill encourages innovation and diversity in product offerings from Alabama producers.

Summary

Senate Bill 274, known as the 'Sweet Grown Alabama Act,' aims to amend the Alabama Code by exempting producer value added agricultural products from sales tax. This legislation is designed to support local farmers and agricultural producers by easing the tax burden on products that have undergone further processing, thus intending to foster economic activity within the agricultural sector. The bill focuses specifically on agricultural products processed by the producers themselves or their immediate family, reinforcing support for small, local farming operations.

Sentiment

The sentiment around SB274 appears to be largely positive among agricultural stakeholders, who view the bill as a vital step towards enhancing the competitiveness of local farms. Supporters argue that removing the sales tax on producer value added products will create more opportunities for farmers to succeed in a competitive marketplace. However, there may be concerns from broader tax policy advocates regarding the implications of such exemptions on state revenue, as the bill could potentially reduce overall tax income from sales taxes.

Contention

While the bill enjoys considerable support from agricultural groups, it raises questions about fairness in the tax system. Critics may argue that the sales tax exemption could unintentionally favor larger producers over smaller, less-capable farmers, who may struggle to process products on their own. Moreover, the strain on state revenue collections from the implementation of such exemptions could become a contentious point, especially in discussions about funding for essential public services and programs, which rely on tax revenue.

Latest SB274 Activity

Companion Bills

AL HB412

Same As Sales and use tax, agricultural products, producer value added agricultural products exempt from sales tax, Sec. 40-23-1, 40-23-4 am'd.

Previously Filed As

AL HB605

Taxation; to exempt the sale of certain items used in agricultural production from state sales and use tax

AL HB282

Taxation, sales tax exemptions, sales and use tax exemption provided for purchases of optical aids, including eyeglasses and contact lenses.

AL HB74

Taxation, sales tax exemptions, sales and use tax exemption provided for purchases of optical aids, including eyeglasses and contact lenses

AL HB176

Taxation, sales tax exemptions, sales and use tax exemption with local option provided for purchases of optical aids, including eyeglasses and contact lenses

AL SB62

Taxation, sales tax exemptions, sales and use tax exemption provided for certain purchases of diapers, baby supplies, baby formula, maternity clothing, and menstrual hygiene products

AL HB152

Taxation, sales tax exemptions, sales and use tax exemption provided for certain purchases of diapers, baby supplies, baby formula, maternity clothing, and menstrual hygiene products

AL HB51

Taxation, sales tax exemptions, sales and use tax exemption provided for purchases of hearing instruments, including hearing aids.

AL HB236

Taxation, sales tax exemptions, sales and use tax exemption provided for certain purchases of diapers, baby supplies, baby formula, maternity clothing, and menstrual hygiene products

AL SB159

Taxation, sales tax exemptions, sales and use tax exemption provided for certain purchases of diapers, baby supplies, baby formula, maternity clothing, and menstrual hygiene products

AL HB253

Taxation; certain aircraft and aircraft parts are exempt from sales, use, and lease taxes

Similar Bills

AL HB412

Sales and use tax, agricultural products, producer value added agricultural products exempt from sales tax, Sec. 40-23-1, 40-23-4 am'd.

AL HB10

Taxation, commercial fishing, ad valorem tax exemption for vessels and equipment, sales and use taxes exemption for bait, levy of excise tax at a rate differential of one and one-half percent on purchase and storage of vessels and machinery used for commercial fishing, Secs. 40-9-1, 40-23-1, 40-23-4, 40-23-37, 40-23-60, 40-23-63 am'd.

AL HB396

To amend Sections 40-23-1 and 40-23-4, as last amended by Act 2022-291, Act 2022-293, Act 2022-373, and Act 2022-199, 2022 Regular Session, Code of Alabama 1975, related to sales taxes; to define food and exempt sales of food from state sales and use taxes; to establish the local sales tax rate on food for purposes of county and municipal sales and use taxes as the existing general or retail local sales tax rate; and to allow a local governing body to reduce the local sales tax rate or exempt food from local sales and use taxes.

AL HB176

Taxation, sales tax exemptions, sales and use tax exemption with local option provided for purchases of optical aids, including eyeglasses and contact lenses

AL HB282

Taxation, sales tax exemptions, sales and use tax exemption provided for purchases of optical aids, including eyeglasses and contact lenses.

AL HB74

Taxation, sales tax exemptions, sales and use tax exemption provided for purchases of optical aids, including eyeglasses and contact lenses

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 SB177

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.