Alabama § 40-23-4.6 - Exemption for Agricultural Fencing Materials.

§ 40-23-4.6. Exemption for Agricultural Fencing Materials.

(a) For a period commencing October 1, 2024, and ending September 30, 2029, up to twenty-five thousand dollars ($25,000) of the gross proceeds from the sale of fencing materials such as t-posts, wood posts, barbed wire, net wire, smooth wire, standard metal gates, and other like materials used for the purpose of fencing in agriculture livestock applications are exempt from the sales and use tax as provided for in Section 40-23-2 and 40-23-61. The exemption provided in this subsection shall not apply to county or municipal sales and use taxes unless approved by resolution or ordinance adopted by the local governing body.

(b) To qualify for the exemption, a retail purchaser shall provide to a seller an affidavit confirming the purchased material is strictly for an agriculture livestock application. The affidavit shall relieve the seller of the obligation to collect the tax under Chapter 23 of Title 40, with respect to the sale of such materials. The Department of Revenue shall make the affidavit available to sellers.