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Committee adopts substitute to exempt state sales tax on corn sold for deer and livestock feed
Summary
The House Ways and Means Education Committee adopted a substitute to HB87 that exempts state sales tax on corn sold to feed deer and other livestock and gave the bill a favorable report; sponsors said the change narrows the exemption to state taxes only and staff said the fiscal impact was nondeterminable.
Representative Sales presented House Bill 87 on the committee floor, describing it as a narrow fix to avoid sales-tax audits at farm stores where identical bags of corn can be sold either for livestock or as deer feed. "It's a bag of corn... it was exempt the sales tax on corn bought to feed deer along with other livestock," Sales said while explaining the substitute narrows the measure to state taxes only.
Committee staff said they could not locate specific data to quantify the revenue effect. Dustin, a committee staff analyst, told members, "We weren't able to determine any, find any data sources that were related directly to this," and said the fiscal note lists the impact as nondeterminable.
Chairman and members debated the administrative burden on retailers who must determine purchaser intent; Sales and other members said the substitute simplifies enforcement by treating the product consistently. Representative Collins asked whether the substitute defines "corn" narrowly; Sales confirmed the change applies only to corn.
Reverend Stubbs moved to adopt the substitute and Representative Baker seconded; the committee adopted the substitute by voice vote. The committee later moved and approved a favorable report on HB87 by voice vote.
The committee did not record a roll-call tally on either the substitute adoption or the favorable report; the transcript records only voice responses of "Aye."
