Bills › 90th General Assembly
Where it is now
- Done: IntroducedFebruary 8, 2024
- Done: SubcommitteeFebruary 8, 2024
- Done: House committeeMarch 6, 2024
- Skipped: Passes the HouseContinued as HF 2649
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Became HF 2649 → Its progress continues under the new number. Go to HF 2649 What’s a funnel?
What’s in it
AI summary People who make most of their money from farming or ranching may not have to pay income tax on profits from selling certain animals. This includes cattle or horses used for breeding, dairy, or sports, as well as other types of breeding livestock. Retired farmers cannot use this rule if they are already getting a similar tax break.1
Read the official explanation
This bill excludes the net capital gain from the sale of certain livestock from the computation of net income for purposes of the individual income tax. _____ percent of the taxpayer’s gross income from farming or ranching operations during the tax year. The bill allows a taxpayer to exclude the net capital gain from the sale of breeding livestock, other than cattle or horses, held by the taxpayer for a period of months or more from the date of acquisition, but only if the taxpayer received more than one-half of the taxpayer’s gross income from farming or ranching operations during the tax year. 7(13). The bill applies retroactively to January 1, 2024, for tax years beginning on or after that date.
Changed since by amendment H-8174; see Amendments.
House subcommittee
Named February 8, 2024. On February 21, 2024 it recommended passage. Vote Total: 3-0.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
1 written public comment to its subcommittee: April 15, 2024 (1) · on the Legislature’s site
Fiscal note
AI summary This bill allows certain farmers and ranchers to exclude net capital gains from the sale of cattle, horses, or breeding livestock from their taxable income. The bill is projected to decrease State General Fund revenue by $5.3 million in fiscal year 2025, $2.6 million in fiscal year 2026, $2.2 million in fiscal year 2027, $2.2 million in fiscal year 2028, $2.3 million in fiscal year 2029, and $2.3 million in fiscal year 2030. Additionally, the bill is expected to decrease the statewide local option income surtax for schools by $133,000 in fiscal year 2025, $64,000 in fiscal year 2026, $55,000 in fiscal year 2027, $56,000 in fiscal year 2028, $57,000 in fiscal year 2029, and $59,000 in fiscal year 2030. Administrative and enforcement costs related to this bill cannot be estimated.3
From the note: The proposed exclusions from the individual income tax in House File 2649 are projected to decrease net individual income tax liability and State General Fund revenue by the following amounts: • FY 2025 = $5.3 million • FY 2026 = $2.6 million • FY 2027 = $2.2 million • FY 2028 = $2.2 million • FY 2029 = $2.3 million • FY 2030 = $2.3 million The decrease in tax liability is also projected to decrease the statewide local option income surtax for schools by the following amounts: • FY 2025 = $133,000 • FY 2026 = $64,000 • FY 2027 = $55,000 • FY 2028 = $56,000 • FY 2029 = $57,000 • FY 2030 = $59,000
- Final Fiscal Note — Capital Gains Deduction, Sale of Livestock · April 30, 2024 · $5.3M
- Capital Gains Deduction, Sale of Livestock · March 21, 2024 · $5.3M
- Capital Gains Deduction, Sale of Livestock · March 11, 2024 · $2.7M
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90th General Assembly