HF 1097 Summary

• Qualified farms can receive 12-year property tax exemptions and sales tax exemptions for certified agricultural processing facilities that convert farm commodities into marketable products.

• Facilities must meet requirements including: location outside the metropolitan area, processing agricultural commodities from the qualified farm, increasing farm employment by minimum 25 percent, and annual investment equal to at least 10 percent of prior year gross revenue.

• Certified farms must repay tax benefits if employment or investment requirements are not maintained, using procedures similar to the JOBZ program.

• Establishes a loan program through the state authority allowing participation in loans up to 45 percent of principal or $300,000 (whichever is less) for construction or expansion of certified processing facilities, with a $50 initial application fee.

• Tax exemptions effective for property tax assessments beginning 2016 and for sales/purchases made after December 31, 2015.