Senate committee advances substitute to exempt livestock processing from state sales tax

The Senate Finance Committee on the floor reported a committee substitute for Senate Bill 10 to the full Senate with a recommendation that it pass.

The committee counsel explained the substitute, saying the change removes the requirement that slaughterhouse services be performed "for the owner," making processing services for beef, pork and lamb tax exempt. The counsel said the substitute brings the bill into conformity with pending House Bill 2146 and noted an attached fiscal note from the Tax Division.

The counsel summarized the fiscal estimates: under the introduced version the Tax Division estimated a $430,000 revenue loss in fiscal year 2026 and about $1,000,000 in each subsequent year; the committee substitute estimate aligned with House Bill 2146 was $600,000 in FY2026 and $1,400,000 each year after that.

Committee members had no extended public debate recorded on the floor; the chair called for a voice vote and declared the ayes had it. The committee recorded the motion as adopted and the substitute will be reported to the full Senate.

Votes at a glance: committee substitute for Senate Bill 10 — motion to report to full Senate with recommendation that it do pass; voice vote; chair declared motion adopted (counts not specified).