HB 6575 Summary

• Amends the Use Tax Act to clarify and expand the agricultural production exemption by replacing outdated language with a clear definition of "agricultural production" covering tilling, planting, caring for, and harvesting crops and raising livestock, poultry, or horticultural products.

• Expands agricultural exemption to include tangible personal property sold to unitary business group members even if their primary business is not agricultural, as long as the property is used in agricultural production.

• Adds specific exemptions for machinery capable of simultaneously harvesting grain and biomass, machinery for harvesting biomass, agricultural land tile for subsurface drainage systems, and portable grain bins designed for disassembly.

• Defines "biomass" to include crop residue used for energy production, agricultural crops grown specifically for energy production, and organic by-products or waste from agricultural production.

• Clarifies that the agricultural exemption does not apply to transfers of food, fuel, clothing, or personal consumption items, or tangible personal property permanently affixed to real estate.