Farm machinery replacement parts and repair

From the 2024 DOR Tax Exemption Study

82.08.855; 82.12.855 - Farm machinery replacement parts and repair Description Replacement parts, including, installation or repair, for farm machinery primarily used in the production of agricultural products are exempt from sales and use taxes. The exemption is available to farmers actively engaged in producing agricultural products which resulted in at least $10,000 in gross proceeds in the previous year. Replacement parts do not include consumable supplies such as fuel or oil. Purpose Supports the agricultural industry. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $22.545 $23.424 $24.337 $25.287 Local Taxes $6.517 $6.771 $7.035 $7.310 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $21.472 $24.337 $25.287 Local Taxes $0.000 $4.840 $7.035 $7.310 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate based on compound growth of the last 5 years of farm supplies and repairs expenditures. - Local revenue estimates use the rural average local sales and