HB188 Summary

• Exempts agricultural machinery and equipment from state sales and use tax, eliminating the current 1.5 percent tax rate on these items used on farms.

• Applies exemption to machines, machinery, and equipment used in planting, cultivating, harvesting farm products, and livestock or poultry production, along with parts, attachments, and replacements.

• Excludes automotive vehicles and trailers designed for public highway use from the exemption, except for farm trailers used primarily in agricultural production and harvesting.

• Exemption does not apply to local sales or use taxes unless previously exempted by local law or approved by local governing body resolution.

• Becomes effective October 1, 2014, and repeals existing administrative provisions for agricultural machinery tax collection.