The bill introduces an exemption from sales and use tax for agricultural fencing materials up to a value of $25,000. This exemption is set to be in effect from October 1, 2024, to September 30, 2029. The materials covered by this exemption include t-posts, wood posts, barbed wire, net wire, smooth wire, standard metal gates, and similar materials used specifically for fencing in agricultural livestock applications. The exemption applies to state sales and use taxes as outlined in Section 40-23-2 and 40-23-61 of the Code of Alabama 1975, but it does not automatically apply to county or municipal sales and use taxes unless a local governing body approves it through a resolution or ordinance.

To take advantage of the exemption, retail purchasers must provide sellers with an affidavit confirming that the materials purchased will be used strictly for agricultural livestock applications. This affidavit will relieve the seller from the obligation to collect the tax on the sale of these materials. The Alabama Department of Revenue is tasked with making the affidavit available to sellers. The act is scheduled to become effective on October 1, 2024. The bill has passed both the Senate and the House of Representatives, with the final certification of passage in the Senate being signed by Secretary Patrick Harris and in the House of Representatives on April 23, 2024. The bill is sponsored by Senator Williams.

Statutes affected:
Introduced: 40-23-2
Engrossed: 40-23-2, 40-23-61
Enrolled: 40-23-2, 40-23-61