Mississippi farmers could soon see financial relief after the state Senate passed legislation eliminating the 1.5% sales tax on certain agricultural equipment.
After being introduced by state Sen. Neil Whaley, R-Potts Camp, and passing out of the Senate Finance Committee, the chamber passed Senate Bill 2272 nearly unanimously in a 50-1 vote on Monday.
According to the bill, the tax exemption would apply to farm tractors and farm implements used directly in agricultural production, including equipment used to raise poultry, livestock, fish, crops, and ornamental plants. The exemption would also cover parts and labor to maintain or repair that equipment, as long as it is used on a farm.
The bill also extends to logging, pulpwood, and tree-farming equipment, along with related parts and labor, provided the machinery is self-propelled or permanently attached to self-propelled equipment.
Republican Lt. Gov. Delbert Hosemann, who has identified the measure as one of his legislative priorities this season, highlighted the bill’s impact in a social media post following the vote.
“Today, the Mississippi Senate passed Senate Bill 2272 to eliminate the 1.5% sales tax on agricultural equipment. Mississippi farmers have been struggling with multiple years of losses, and this is a straightforward way we can provide immediate relief and cut their operating costs.” Hosemann said.
The legislation would also direct the Mississippi Department of Revenue to create an application process allowing qualified commercial farmers to obtain a permit for the tax exemption. As part of the process, farmers would apply for certification and present the permit when purchasing qualifying equipment to avoid paying sales tax at the point of sale.
SB 2272 is now headed to the Mississippi House of Representatives for consideration.
