SB24 Summary

• Exempts the sale, storage, use, and consumption of agricultural machinery and equipment for farm use from state sales and use tax, eliminating the existing 1.5 percent tax rate.

• Applies the exemption to machines and equipment used in planting, cultivating, harvesting farm products, and producing agricultural commodities, livestock, or poultry, including 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.

• Allows local governments to opt out of the exemption unless they have previously exempted agricultural machinery from local sales or use tax.

• Repeals Sections 40-23-38 and 40-23-64 and becomes effective October 1, 2016.