Sales and use taxes: farm equipment and machinery.
Vote required
Two Thirds
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill modifies California’s sales and use tax laws to ensure that farm equipment and machinery, and their parts, remain exempt from state sales tax. Specifically, it removes a provision that previously allowed local governments to incorporate this exemption into their local sales tax rates. The bill also includes an appropriation to reimburse counties and cities for any revenue losses resulting from this change, and establishes performance indicators for evaluating the exemption's effectiveness.
Key provisions
- Deletes a provision allowing local governments to incorporate farm equipment and machinery exemptions into local sales taxes.
- Establishes a temporary exemption for farm equipment and machinery purchases used in agricultural production until January 1, 2032.
- Provides an appropriation of $200 million from the General Fund to reimburse counties and cities for revenue losses.
- Defines ‘qualified person’ as someone engaged in agricultural production using farm equipment.
- Specifies ‘farm equipment and machinery’ as implements of husbandry.
- Includes performance indicators for evaluating the exemption’s goals.
- Requires the exemption to be effective starting September 1, 2001.
Who is affected
- Farmers and agricultural producers
- Retailers selling farm equipment and machinery
- Counties and cities (due to revenue reimbursement)
- The State of California (through appropriations)
Bill text
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Sponsors
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1 on record
Primary sponsor
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