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Farmers rely on exemptions provided for feed, seed, fertilizer, grain storage and hardware for their livelihood. Feed, seed and fertilizer are the raw materials used in production of a product that will ultimately be taxed. Therefore, these raw materials should be excluded from taxes, much like the steel used in manufacturing vehicles is excluded.
Key Messages:
- We support exemptions from the sales and use tax on all items used in conjunction with agricultural production.
- We oppose any additional tax on any farm commodity.
- We recognize the use of feed, seed, and fertilizer for conservation and wildlife as a legitimate agricultural use and therefore subject to normal agricultural sales tax exemptions.
Background:
It is common for prices of fertilizer, fuel and other
agricultural inputs to fluctuate anywhere from 25 percent to several hundred percent over the period of a few years; and on a limited income, those variations can be devastating.
Correlating Issues:
- We support sales tax exemptions for electricity used for agriculture production just like natural gas and liquid petroleum.
- We oppose the excise tax on farm tractor and implement tires.
- We recommend the exclusion of agricultural aircraft fuel from the federal airport and airway tax.
- There should be no user fees on agricultural and general aviation aircraft.
Click here to download a PDF version of this Issue Card.
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