The Alabama Department of Revenue (“the Department”) appeals from a judgment of the Houston Circuit Court holding that The National Peanut Festival Association, Inc. (“the taxpayer”), was entitled to a refund of taxes and interest paid to satisfy a final assessment entered on July 31, 2006.

Alabama Department of Revenue Company Information and Contacts:

The taxpayer is a nonprofit corporation whose objective, according to its bylaws, is to promote interest in peanuts and peanut farming. Pursuant to that objective, and to also further interests in agriculture in general, the taxpayer holds an annual event known as the National Peanut Festival (“the Festival”) in Dothan. At that event, the taxpayer displays exhibits regarding peanuts, peanut farming, and other agricultural pursuits, as well as livestock. Those exhibits are housed in large buildings, the cost of which were financed in part by the United States Department of Agriculture based on its determination that the Festival is an agricultural fair.