Sales and use tax; agricultural exemptions. Provides a sales and use tax exemption for property used to produce agricultural products for market in an indoor, closed, controlled-environment commercial agricultural facility. The property exempted includes (i) internal structural components required to create the necessary growing environment for plants, including watering systems, towers for growing plants, and lighting and air systems, and (ii) transparent elements of external structural components of such facilities, including windows, walls, and roofs, that allow sunlight in for the commercial production of agricultural products. The exemption shall not apply to property used in producing cannabis. The bill allows contractors working on behalf of owners of facilities exempt under these new provisions to use the exemption when purchasing materials that would otherwise qualify for the exemption. This bill is identical to HB 1563.

Statutes affected:
Senate: Prefiled and ordered printed; offered 01/11/23 23102416D: 58.1-609.2
Senate: Committee substitute printed 23105327D-S1: 58.1-609.2, 58.1-610
Senate: Bill text as passed Senate and House (SB1240ER): 58.1-609.2, 58.1-610
Governor: Acts of Assembly Chapter text (CHAP0517): 58.1-609.2, 58.1-610