ID H0087

Exempts machinery and equipment used exclusively in agricultural production or harvest from property taxes, including specific applications for mint oil distillation, hop processing, dairy operations, and honey extraction that were previously taxed inconsistently across Idaho counties.

Defines "agricultural machinery and equipment" to include equipment used in field crop production, hop crop production with specific examples (picking machines, drying kilns, conveyors, baling equipment), and livestock/dairy/bee operations.

Defines "harvest" to include all activities necessary to put raw agricultural commodities into their most basic salable form, plus on-farm storage before the commodity enters primary trade channels.

Establishes that the exemption applies to class 2 property exclusively used in agriculture during the immediately preceding tax year and explicitly excludes buildings from the definition.

Declares the exemption provisions shall be broadly interpreted in favor of granting the exemption, with Sections 1 and 2 effective retroactively to January 1, 2019, and Sections 3 and 4 effective January 1, 2020.