Farm auction sales

From the 2024 DOR Tax Exemption Study

82.08.0257; 82.12.0258 - Farm auction sales Description Sales of farm related tangible personal property by an auctioneer are exempt from sales and use taxes. The seller must be a farmer with the sale held on a farm. This exemption does not apply to personal property used by the seller in the production of cannabis, useable cannabis, or cannabis-infused products. Purpose To support the agricultural industry and farmers selling old equipment to purchase new equipment. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.883 $1.921 $1.959 $1.998 Local Taxes $0.544 $0.555 $0.566 $0.578 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.761 $1.959 $1.998 Local Taxes $0.000 $0.509 $0.566 $0.578 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - On average $28.4 billion is spent on agricultural machinery and equipment sold at auction. - 2% growth based on purchases of farm equipment the last five years. - 10% of all farm equipment is sold at auctions. - Local revenue est