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- State Senator Neil Whaley, the bill’s author, said the goal of the measure is to provide relief for farmers as many face hard economic times.
A Senate bill erasing the 1.5 percent sales tax on logging and farming equipment passed earlier this week, winning praise from farmers and state leaders.
The bill, SB 2272, would allow commercial farmers to avoid paying taxes on farm implements such as tractors that are used directly in agriculture production.
State Senator Neil Whaley (R), the bill’s author, said the goal of the measure is to provide relief for farmers in the poultry, livestock, fishing, crops, and ornamental plants industries. Exemptions also cover parts and labor for maintenance and repairs.
Further, the bill applies to the logging, pulpwood, and tree-farming industries. It exempts equipment, parts, and labor for machinery that “is self-propelled or permanently attached to self-propelled equipment.”
The legislation also requires the Mississippi Department of Revenue to create an application process to allow commercial farmers to obtain permits for the exemptions. During floor debate, Whaley said the farmers would present the certificate when purchasing qualified equipment to the seller at the point of purchase.
Last year, agriculture brought in an estimated $9.51 billion to the state, according to the Mississippi State University’s Extension Service, making agriculture Mississippi’s largest industry. MSU said poultry was the state’s top product, with a year-end value of 3.73 billion, while continuing its upward trend. Forestry is second with an estimated value of $1.47 billion. Moreover, row crops declined 9% overall, the report stated, with corn seeing big increases. However, cotton, peanuts, rice, and soybeans faced significant declines in value, the report found.
State Senator Angela Hill (R) asked if Whaley’s bill applied only to commercial farmers, to which Whaley said yes. She then asked if perhaps the legislation could also include small family farmers. Whaley was amenable to that suggestion but said SB 2272 is a step in the right direction.
The measure won approval from Commissioner of Agriculture and Commerce Andy Gipson (R). He said it will help farmers and loggers who are seeing hard economic times.
“Many farmers find themselves in uncertain times, wondering if they will get to continue their farming operations. This much-needed sales tax relief will help to ease the burden when purchasing equipment, parts, and inputs,” Gipson said.
Lt. Governor Delbert Hosemann (R) also praised the bill in a social media post, commending Senators Whaley, Andy Berry (R), and Josh Harkins (R) for their work in studying ways to support Mississippi’s agricultural economy.
“Mississippi farmers have been struggling with multiple years of losses, and this is a straightforward way we can provide immediate relief and cut their operating costs,” Hosemann said.
The bill passed the Senate by a vote of 50 to 1, with only State Senator Sollie Norwood (D) opposing the bill. It now heads to the House of Representatives for consideration.
