Tax Guidance for Persons, Firms, and Corporations Who Plant or Cultivate and Harvest
Fruit or Agricultural Products
The legislature has passed and the governor has signed Act 2018-562, amending Sections 40-23-4 and
40-23-62, relating to the state sales and use tax, to specify that the sale of fruit or agricultural products by
the person, firm, or corporation that planted or cultivated and harvested the fruit or agricultural products,
is exempt when the land is owned or leased by the seller.
Act 2018-562 became effective April 6, 2018. Prior to Act 2018-562, the seller had to have planted,
cultivated, and harvested the fruit or agricultural product in order for the product to be exempt from
sales and use tax. With the passage of Act 2018-562, the seller is eligible for the exemption if he or she
only cultivated and harvested the fruit or agricultural product, when the land is owned or leased by the
seller. If the seller planted or cultivated and harvested the fruit or agricultural product, the sale thereof
will be exempt.
If you should have any questions concerning this notice, please contact the Sales and Use Tax Division
by telephone at (334) 242-1490, by email at STExemptionUnit@revenue.alabama.gov, or by mail at
Sales and Use Tax Division, Exemption Unit, P.O. Box 327710, Montgomery, AL 36132-7710.
Click here to download a pdf version of this notice.