The bill provides a temporary exemption from sales and use tax for agricultural fencing materials, allowing up to $25,000 of gross proceeds from the sale of such materials to be exempt from taxation. This exemption applies to materials like t-posts, wood posts, barbed wire, and standard metal gates used specifically for agricultural livestock applications. The exemption is set to commence on October 1, 2024, and will end on September 30, 2029. However, it does not apply to county or municipal sales and use taxes unless a local governing body approves it through a resolution or ordinance.

To qualify for the exemption, purchasers must provide sellers with an affidavit confirming that the materials are intended solely for agricultural livestock use. This affidavit will relieve sellers from the obligation to collect sales tax on these transactions. The Department of Revenue is tasked with making the affidavit available to sellers. The bill also includes the insertion of the term "Enrolled" at the beginning of the text and specifies the effective date of the act.

Statutes affected:
Introduced: 40-23-2
Engrossed: 40-23-2, 40-23-61
Enrolled: 40-23-2, 40-23-61