Farm Bureau is delighted to report that funding for our priority issue, SB905 Stevens/HB1405 Halford Modernization of Ag Sales Tax Exemptions, is included in the state’s budget. We commend the sponsors of this legislation, the finance committees, and most importantly, Farm Bureau’s volunteer leaders who have advocated for this comprehensive reform of the agriculture sales tax exemptions.
While funding is included in the budget for this effort, the legislation, SB905 Stevens/HB1405 Halford, will still have to pass both chambers. It will be heard in the Senate and House Finance, Ways, and Means Committees on Tuesday, April 26. If passed out of the committees, it will likely be heard on the floor in both chambers next week as the General Assembly plans to adjourn before next weekend. It is vital Farm Bureau leaders engage with lawmakers to gain their support for this legislation.
Please contact your lawmakers and ask them to vote in support of the legislation and sign on as cosponsors!
- The goal of this legislation is to modernize this section of the law so it is simple for the farmer, retailer, and Tennessee Department of Revenue to use and understand.
Farmers with an agriculture exemption number (commonly referred to as a card) will not have to pay sales tax on any tangible personal property, including building material, repair service, labor, warranty, software, or any other item which is used for production agriculture under this law. - This does not include automobiles, trucks, household appliances, and gasoline or diesel used in vehicles operated upon the public highways of this state.
- As amended, the legislation will take effect January 1, 2023.
- We appreciate Senator John Stevens and Representative Curtis Halford along with the Senate and House Finance Committees for all of their hard work in advocating for this to be in the state’s budget.
