Farm machinery (state levy)

From the 2024 DOR Tax Exemption Study

84.36.630 - Farm machinery (state levy) Description Personal property in the form of machinery and equipment owned by a farmer and used in growing and producing agricultural products is exempt from both parts of the state property tax levies. Qualifying farm machinery is still subject to local property tax levies. Purpose Reduces the property tax burden for farmers. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $3.026 $3.057 $3.089 $3.122 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing a property tax exemption would not increase state revenues. The repeal exemption shifts the state property tax to the currently exempt taxpayers and reduces the tax burden of other taxpayers. The repeal may decrease the local rate. Local taxing districts at their statutory maximum may experience a revenue increase. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - The total estimated exempt value is $1.4 billion. - This repeal takes effect beginning with property taxes due for calendar year 2025. - Growth rate mirrors the pro