Product leases credit of 33 percent

From the 2024 DOR Tax Exemption Study

82.29A.120(1)(a)(ii) - Product leases credit of 33% Description A credit is allowed against leasehold excise tax equal to 33% of the tax otherwise due on product leases, i.e., leases where the lessee pays the lessor a percentage of the value of the crop produced on the land. Purpose To support agriculture. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.159 $0.162 $0.165 $0.169 Local Taxes $0.139 $0.142 $0.145 $0.148 Repeal of Repealing this credit would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.122 $0.165 $0.169 Local Taxes $0.000 $0.107 $0.145 $0.148 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the leasehold excise tax growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Department of Revenue, Leasehold excise tax data - Economic and Revenue Forecast Council, March 2023 forecast Additional Additional Information Information Category: Agriculture Year Enacted: 1976 Primary Beneficiaries: Farmers who produce crops