Committee advances bill to reduce agricultural sales tax, citing $18–$20 million fiscal note

Senate Bill 2272, introduced by Senator Whaley, would reduce the existing 1.5% agricultural sales tax toward 0% for qualifying farm and forestry purchases. The committee considered the bill and approved it by voice vote.

Senator Whaley described the intended beneficiaries—professional farmers, loggers and certain agricultural inputs including tractors, parts, implements and related supplies—and explained a process in which eligible purchasers obtain an affidavit from the Department of Revenue at the point of sale.

The fiscal note provided to the committee estimated a revenue impact between $18,000,000 and $20,000,000 annually. Senator Beitman asked how much of that amount is diverted to municipalities; Senator Whaley said approximately $1,800,000 of the fiscal impact is currently diverted to cities, and that the remainder is primarily general-fund revenue.

Committee members asked clarifying questions about the affidavit process, how streamlining and registration would operate, and whether existing certificates (similar to an MPC certificate for construction) are analogous. The sponsor said the Department of Revenue can provide more detailed distribution numbers and offered to follow up.

The committee voted that the title was sufficient and advanced the bill by voice vote; the transcript records "The ayes have it" with no numerical roll call recorded.

Next steps: SB2272 moves toward further floor consideration; the sponsor and department said they would provide additional distribution details to committee members.