(1) The gross
receipts from sales of grass sod of all kinds and character when in the
original state of production or condition of preparation for sale, when such
sales are made by the producer or members of this family or for him by those
employed by him in the production thereof, are exempt from sales and use tax.
This exemption does not apply to sales of grass sod by a person engaged in the
business of selling plants, seedlings, nursery stock, or floral products.
(Adopted October 19, 1976.) [Section
(2) Sales of grass sod by the
person or corporation that planted, cultivated, and harvested the sod are
exempt from sales and use tax. Unlike the exemption outlined in paragraph (1)
above, this exemption is not lost to the producer who also sells plants,
seedlings, nursery stock, or floral products. [Section
A seller who claims the
exemption outlined in paragraph (2) must keep sufficient records to document
such claims; and, in the absence of sufficient documentation, shall be liable
for the sales or use tax due on all sales for which exemption claims cannot be
verified by the Revenue Department.
Author: Dan DeVaughn
Ala. Admin. Code r.
Adopted October 29, 1976.
Filed September 28, 1982. Filed January 15, 1993, certification filed April 15,
1993, effective May 20, 1993.
Code of Ala.