Alabama Cottage Food Law Taxes

What can you sell.

Alabama cottage food law taxes. Salient points of the rules governing home based food businesses in alabama include. This is a layman s perspective. Zoning related issues for home based businesses available in. Montgomery and calhoun counties are exempted by state statute from the following requirement.

Here are the basics. Alabama cottage food law course the alabama cottage food law went into effect in 2014 and provides guidance and information for cottage food entrepreneurs. Sales taxes the home kitchen food business module 4. File a review form complete a review form for their cottage food operation with the local county health department.

If your state is not in the list below see this summary of states that do not allow. Food sales under the cot tage food law cannot exceed 20 000 per year and are subject to state county and city sales taxes. States don t want home entrepreneurs selling particular foods. States that do not allow cottage food sales summary by state of states that do not allow sales.

Course materials will reinforce what you learn in the official certification course for the alabama cottage food law certification exam but we will focus on topics and issues not covered in the basic certification course. Cottage food cannot be sold to the following. Businesses are also responsible for pay ing state and federal taxes on income earned through food sales. Previously this state only allowed homemade food sales at farmers markets.

The cottage food law. Cottage food operators must take a food safety training course and are limited to 20 000 of sales per year. According to the state of alabama cottage foods may be sold from home or at local state sanctioned farmer s markets. They ban certain foods that have an involved storage or preparation process.

Cottage food cannot be sold at the following. Restaurants novelty shops grocery stores over the internet specific foods. Of course you should also check with your accountant or tax attorney. Annual sales limit you cannot exceed 20 000 in sales of the food described under the alabama cottage food law.

Cottage food production is governed by alabama s cottage food law sb 159 that went into effect on june 1 2014. A home based food business is allowed to make and sell baked goods cakes breads danish donuts pastries pies and other items prepared by baking the item in the oven. Labels may need to be submitted to the local health department for approval prior to selling. Does this course include legal information.

This cottage food law is relatively restrictive. Alabama created a cottage food law sb 159 in 2014. Politics as usual an exception. The law states t.

Sales tax home processed products are subject to sales tax. It allows direct in person sales of many non perishable food items. See this page about collecting reporting and remitting sales taxes on cottage food sales. You need to find out what.