Custom farm and farm management services

From the 2024 DOR Tax Exemption Study

82.04.758 - Custom farm and farm management services Description Providers of custom farming services and farm management services are exempt from B&O tax if the provider performing the services is the owner or lessor of the land or related to the owner or lessor. Purpose To provide tax relief to persons performing custom farm services for their relatives. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.053 $0.055 $0.058 $0.061 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.051 $0.058 $0.061 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Department of Revenue, Excise tax data - Economic and Revenue Forecast Council, March 2023 forecast Additional Additional Information Information Category: Agriculture Year Enacted: 2022 Prima