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 items like t-posts, wood posts, barbed wire, and standard metal gates, specifically for use in agricultural livestock applications. The exemption is set to be in effect from October 1, 2024, to September 30, 2029, and will not apply to county or municipal sales and use taxes unless approved by local governing bodies.

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 of the obligation to collect sales tax on these transactions. The Department of Revenue is tasked with making the affidavit available to sellers. The bill is set to take effect on October 1, 2024.

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