Relating to the sales and use tax by modifying the sales and use tax exemption for materials and certain machinery and equipment used in agricultural production

This bill relates to the sales and use tax by modifying the sales and use tax exemption for materials used in agricultural production, and for certain machinery and equipment used in such production.3(5) to include the production of agricultural products for intended sale or livestock consumption and related land management practices. “Agricultural products” is modified to include corn, eggs, fruit, hay, honey, livestock, milk, oats, soybeans, vegetables, and wheat.45(5) (refunds of taxed fuel used in agricultural production). 3(6) exempts from the sales and use tax the sales price of fuel for providing heat or cooling for livestock. Currently, the sales price of such fuel is exempt from the sales and use tax if the fuel heats or cools a livestock building.3(6) exempts from the sales and use tax the sales price of tangible personal property that is designed to hold propane which will be consumed as fuel in creating heat, power, or steam for grain drying, livestock, or livestock buildings. The exemption also includes valves, regulators, and piping attached to the property designed to hold propane.3(8)(a)(1) exempts from the sales and use tax the sales price of farm machinery and equipment used primarily in the production of agricultural products. Currently, the sales price of farm machinery and equipment must be used directly and primarily in production of agricultural products in order to be exempt from the sales and use tax.3(11) requires that the sales price of an implement, machinery, or equipment be primarily used in livestock or dairy production, aquaculture production, or the production of flowering, ornamental, or vegetable plants in order for the sales of such items to be exempt from the sales and use tax. Current law requires such items to be directly and primarily used for such purposes.