Appellate Court: Peanut Festival Must Pay Taxes

(AP) -- The Alabama Court of Civil Appeals has ruled that a popular annual festival in Dothan must pay state sales tax on the admission charged for events that don't involve promoting agriculture.

State revenue officials say they believe the ruling means county fairs across the state will have to pay taxes on carnival rides, games, entertainment and other non-agriculture related activities.

The appeals court ruled that the National Peanut Festival must pay taxes on carnival rides, admission to beauty pageants and other events that don't involve agriculture.

The festival, which ended this weekend, does not have to pay taxes for admission to exhibits and other events promoting peanuts and other agriculture products.


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