2022 Farm Package Bills Introduced
A package of legislation championed by the Alabama Farmers Federation to clarify taxes affecting family farms was introduced this week. Members are encouraged to talk with their legislators about the three bills, which promise to bring consistency, certainty and relief to farmers dealing with a broad interpretation of existing tax laws. Companion Senate bills are expected to be introduced next week.
Grain Bin Tax Clarification
HB 400 by Rep. Wes Kitchens, R-Arab, would eliminate inconsistencies and confusion across jurisdictions by clarifying the ad valorem tax exemption for grain bins. Alabama Code already exempts farm implements used exclusively in connection with agricultural property. Grain bin facilities are integral in production by serving as implements for storing, holding, drying, preserving and preparing grain for market. This bill ensures the tax code is enforced consistently throughout Alabama. It is on the agenda for the House Agriculture and Forestry Committee Wednesday.
Sweet Grown Alabama Act
HB 412 by Rep. Van Smith, R-Billingsley, would empower family farms and stimulate local economies by clarifying the inclusion of value-added agricultural products in existing sales tax exemptions. For example, Alabama farmers who grow strawberries currently can sell those strawberries without remitting sales tax, but if they make those strawberries into a jam, they are then required to collect and remit sales tax. Under HB 412, farmers would be given the freedom to explore new marketing options for their products, including jams, pickles and boiled peanuts. To qualify, products must be grown, processed and sold by the farmer, immediate family members, or employees who help cultivate the products.
Business License Clarity
HB 415 by Rep. Gil Isbell, R-Gadsden, protects family farms by affirming existing law prohibiting the requirement of a license or fee for operations related to the disposition of the farmer’s products. Municipalities already are explicitly prohibited from requiring such business licenses. This bill ensures consistency across the state by including county governments in the stated prohibition. It is on the agenda for the House County and Municipal Government Committee Wednesday.
