ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-3-.20. Fertilizer.
(1) Sales of fertilizer when used for agricultural purposes are exempt
from sales and use tax. (Sections 40-23-4(a)(2) and 40-23-62(5))
(2) The word "fertilizer" as used in the exemption sections referenced
above means any material (not including cottonseed meal when unmixed with
other material) which results in an increase in plant growth when added
to the basic natural substances in which plants are grown. Basic natural
substances, including sand, clay, top soil, and water are not to be considered
to fall within the meaning of the word "fertilizer" as used in those sections.
(Sections 40-23-4(a)(2) and 40-23-62(5))
(3) Ammonium nitrate when used as an explosive, and not for agricultural
purposes as a fertilizer, is taxable when sold to the consumer or user.
(Sections 40-23- 2(1) and 40-23-61(a)) (Adopted March 9, 1961, amended
November 1, 1963, readopted through APA effective October 1, 1982, amended
March 24, 1993)
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