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AL - Rule on food bank exemption enacted

The Alabama Department of Revenue has issued a new rule explaining the previously enacted state, county, and municipal sales and use tax exemption for food banks. For purposes of the exemption, a "food bank" is any entity located within Alabama that is an affiliated food bank of the "America's Second Harvest - The Nation's Food Bank Network" or their subsidiary distribution organizations (SDOs). The term "subsidiary distribution organization (SDOs)" means smaller food banks or larger agencies allied with affiliated food banks that are private, nonprofit, charitable organizations providing important community services. Although some are agencies, all SDOs distribute part of their food to other charities for direct distribution to clients. The rule also provides a list of the current food banks and SDOs that are entitled to the exemption. Rule 810-6-3-23.01, Alabama Department of Revenue, effective December 4, 2007



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