HB 2275 Summary

• Expands the definition of "propagative materials" exempt from transaction privilege tax to include soil and plant additives, agricultural minerals, micronutrients, fertilizers, insecticides, herbicides, fungicides, and plant growth regulators used in commercial agricultural production.

• Removes "coal" from a specific exemption in section 42-5061 (petroleum, coke, natural gas, virgin fuel oil and electricity) but adds a new standalone exemption for sales of coal in subsection A, paragraph 61.

• Applies the same propagative materials exemption to use tax under section 42-5159, ensuring consistency between transaction privilege tax and use tax treatment.

• Explicitly excludes propagative materials used in producing cannabis plants (except industrial hemp as defined in statute) from the exemption in both transaction privilege tax and use tax sections.

• Effective November 30, 2019, with conditional enactment provisions tied to the effective date established in Laws 2018, chapter 263, section 5.