Legislation has been introduced in the Mississippi Senate to alleviate some of the financial burden those in the agricultural industry face when purchasing equipment.
State Sen. Neil Whaley, R-Potts Camp, brought forth Senate Bill 2272 on Wednesday, aimed at helping farmers and loggers save money when purchasing supplies. The bill serves to remove the 1.5% sales tax currently levied on agricultural equipment.
According to the legislation, the tax exemption would apply to farm tractors and farm implements used directly in agricultural production, including equipment used to raise poultry, livestock, fish, crops, and ornamental plants. The exemption would also cover parts and labor to maintain or repair that equipment, as long as it is used on a farm.
The bill also extends to logging, pulpwood, and tree-farming equipment, along with related parts and labor, provided the machinery is self-propelled or permanently attached to self-propelled equipment.
“We want to reduce the taxes on buying equipment for agriculture,” Republican Lt. Governor Delbert Hosemann said when discussing the bill. “We have a 1.5% sales tax. Agriculture is really, really, really struggling in Mississippi, and we want to help.”
Under the bill, the Mississippi Department of Revenue would create a commercial farmer permit program. Farmers would need the permit to qualify for the proposed tax breaks. The legislation has been referred to the Senate Finance Committee, where it needs approval before it can go to the full chamber for a vote.