Alabama Cottage Food Law Taxes

Zoning related issues for home based businesses available in.

Alabama cottage food law taxes. Collecting taxes on your cottage food sales. States that do not allow cottage food sales summary by state of states that do not allow sales. Of course you should also check with your accountant or tax attorney. 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.

It allows direct in person sales of many non perishable food items. Annual sales limit you cannot exceed 20 000 in sales of the food described under the alabama cottage food law. You need to find out what. Labels may need to be submitted to the local health department for approval prior to selling.

Politics as usual an exception. File a review form complete a review form for their cottage food operation with the local county health department. Previously this state only allowed homemade food sales at farmers markets. Cottage food cannot be sold to the following.

This is a layman s perspective. Food sales under the cot tage food law cannot exceed 20 000 per year and are subject to state county and city sales taxes. Montgomery and calhoun counties are exempted by state statute from the following requirement. Businesses are also responsible for pay ing state and federal taxes on income earned through food sales.

Cottage food cannot be sold at the following. This cottage food law is relatively restrictive. What can you sell. They ban certain foods that have an involved storage or preparation process.

Here are the basics. Some states require that the food preparers take and pass a special training course and certification. See this page about collecting reporting and remitting sales taxes on cottage food sales. Sales taxes the home kitchen food business module 4.

Sales tax home processed products are subject to sales tax. Salient points of the rules governing home based food businesses in alabama include. Cottage food operators must take a food safety training course and are limited to 20 000 of sales per year. Restaurants novelty shops grocery stores over the internet specific foods.

Does this course include legal information. 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. According to the state of alabama cottage foods may be sold from home or at local state sanctioned farmer s markets. Cottage food production is governed by alabama s cottage food law sb 159 that went into effect on june 1 2014.

Many of the states that allow cottage food businesses basically making and selling certain allowed food products from and out of your home have lots of guidance except about taxes. If your state is not in the list below see this summary of states that do not allow. Alabama created a cottage food law sb 159 in 2014. Alabama s cottage food law sb 159 opens the door for small food business expansion without compromising public health.