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Senate committee advances SB 159 to exempt energy tax for certain farms after amendments
Summary
A Senate committee gave SB 159 a favorable report (13-0) after adopting a sunset and a greenhouse-scope amendment; the bill would exempt gross receipts tax on natural gas and electricity for catfish farms, nurseries, chicken houses and irrigation pivots, sponsors said.
The Senate committee advanced Senate Bill 159 on a unanimous 13-0 vote after adopting two amendments, including a sunset provision and a narrowing of greenhouse product coverage.
Sponsor Senator Williams told the committee, "What this bill does mainly is, take away gross receipt tax on natural gas and electricity for catfish farms, nursery, chicken houses, and, pivots in the big fields." He framed the change as a response to struggling farm economics, saying energy costs can represent "20 to 40%" of chicken-house expenses and that farm losses have risen in recent years.
The bill was amended twice before the final vote. Committee discussion recorded that Senator Roberts moved the sunset amendment and Senator Smitherman seconded it; the amendment passed on a roll call the chair recorded as 13 ayes, 0 nays. A second amendment narrowed the scope for greenhouse products; the chair noted there was no objection to using the previous roll and declared that amendment adopted.
Committee members asked how the bill would apply to different operations. Senator Figures asked whether a small backyard greenhouse would qualify and whether a person would need to be a "full-fledged" farmer; Senator Williams replied that many farms now operate greenhouses and suggested a 20-by-10 greenhouse would qualify while acknowledging the need for a clearer statutory definition. Senator Sessions asked whether propane was already exempt; the sponsor confirmed propane already is treated as tax-exempt for some farm uses, and said SB 159 would primarily extend the exemption to natural gas lines and electrical use for irrigation pivots and poultry operations.
The committee also discussed catfish farms. The sponsor said catfish producers are being undercut by imports and that catfish farms are included in the bill's coverage. After debate and the two amendments, Senator Smitherman moved a favorable report and Senator Sessions seconded it. The chair announced the final tally as 13 ayes, 0 nays and stated, "The bill is given in favor of report." The committee then adjourned.
The transcript records roll-call tallies for the amendment and final votes (13-0) but does not unambiguously link each individual "aye" to names in the recorded roll; the article reports the committee's recorded tallies as stated on the record. Next procedural steps (committee referral or date for further consideration) were not specified in the transcript.
