National Peanut Festival in Court

A Houston County circuit judge will decide if the National Peanut Festival will continue paying state sales tax or be exempt. A hearing on the matter was held Thursday.

The National Peanut Festival wants to get out of paying the four-percent sales tax on admission tickets.

Attorneys for the non-profit organization say other fairs in Alabama already have tax-exempt status. But, State Department of Revenue Attorney David Avery argued those exemptions are based on an erroneous attorney general's opinion.

Avery says a 1935 law did exempt non-profits from paying property taxes, but then Alabama did not even have a sales tax.

A judge's ruling is expected by the end of the month.

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