Committee advances study on including equine farming in current-use program; retail-pricing rules adjusted

The House Ways & Means Committee on May 28 voted to approve the Senate's proposal of amendment to H942, a catchall agriculture bill that directs the Commissioner of Taxes to study whether equine farming should be included in the state's use-value (current-use) appraisal program and clarifies retail-pricing requirements for stores.

Bradley Shelman of the Office of Legislative Council summarized the underlying bill as addressing three main areas: making water-quality training for farmers optional, non-sewage waste management on farms (for example composting), and retail-pricing enforcement to ensure the price shown on shelf stickers matches the checkout price. Shelman said the Senate amendment replaces direct authorization for equine enrollment with a directive that "the commissioner of taxes shall study this issue" and report recommendations to the House Ways & Means and Senate agriculture and finance committees by Dec. 15, 2026.

Why it matters: if the study recommends a path to enroll equine operations and buildings in current use, properties and farm buildings that qualify could receive education and municipal property-tax benefits, reducing local and education tax bases. Shelman cautioned the committee that any fiscal effects depend on the study's findings and scope; he noted prior work on the topic was done around 2013 and the department will reassess with updated data.

The amendment also clarifies retail-pricing enforcement administered by the Agency of Agriculture: stores must ensure sticker prices match checkout totals, unit-pricing must conform to national standards incorporated by reference, and electronic shelf labels cannot be updated dynamically during open hours (stores may only change electronic shelf labels while closed). The amendment exempts convenience stores, as defined in the change, from the unit-pricing requirement while maintaining the obligation to display an accurate total selling price.

Committee discussion focused on the limited statutory scope of the study and the distinction between the tax program question and permitting or zoning issues such as Act 250 or local land-use rules. Members pressed staff for technical clarifications the study will need to address, including whether equine activities are for gain or profit, the number and size of operations potentially affected, and whether a change to the statutory "farmer" test (often the 50% income threshold) would be required to allow building enrollment.

Staff explained that even without a change to current use for buildings, land currently may be enrolled if it meets existing acreage tests (for example, parcels of 25 acres or more can qualify for land enrollment), though building enrollment and the related tax valuation for structures would hinge on whether equine activities count toward the statutory farmer test.

No fiscal estimate was provided at the meeting because the provision is a study; staff said the department will include fiscal estimates in its recommendations. The report is due Dec. 15, 2026; the committee advanced the amended bill to the floor.

Next steps: the Commissioner of Taxes will produce the study and fiscal estimate for the named committees by Dec. 15, 2026; the Ways & Means Committee forwarded the Senate amendment favorably to the House floor.