Under existing law, the gross proceeds from the sale or use of certain agricultural machinery and equipment are taxed at a rate of one and one-half percent. The gross proceeds from the sale of other tangible property sold at retail are taxed at a rate of four percent. This bill would exempt the gross proceeds from the sale of certain agricultural production inputs, energy used in agriculture, certain diesel exhaust fluid, and agricultural machinery and equipment from state sales and use tax and would provide for the administration of tax exemption certificates to qualified agricultural producers.

Statutes affected:
Introduced: 40-23-2, 40-23-37, 40-23-61, 40-23-63