The proposed bill aims to provide a sales and use tax exemption for the retail sale of fish or other seafood in its original or unmanufactured state by licensed producers, which include commercial fishermen and owners of commercially licensed vessels. Specifically, the bill inserts new legal language stating that the gross proceeds from these sales are exempt from the state sales and use tax as outlined in Sections 40-23-2 and 40-23-61 of the Code of Alabama 1975. Additionally, it allows counties and municipalities the option to exempt these sales from local sales and use taxes, as per Section 40-23-4.01 of the same code.

The bill is set to take effect on September 1, 2026, and does not include any deletions from current law. The legislative process for this bill has progressed through the House of Representatives, where it was read, referred to committee, and ultimately passed with amendments, receiving overwhelming support with 103 votes in favor and only 1 abstention.

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