Livestock medicine

From the 2024 DOR Tax Exemption Study

82.08.880; 82.12.880 - Livestock medicine Description Pharmaceuticals used by farmers for livestock are exempt from sales and use taxes. The U.S. Department of Agriculture (USDA) or the Food and Drug Administration (FDA) must approve the drug. The exemption applies to sales made directly to farmers or to veterinarians who in turn administer the medicine to livestock. Purpose Supports the agricultural industry by offsetting the high cost of medicine for livestock. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.158 $0.158 $0.158 $0.158 Local Taxes $0.046 $0.046 $0.046 $0.046 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.145 $0.158 $0.158 Local Taxes $0.000 $0.042 $0.046 $0.046 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - No growth due to fluctuations in sales volumes of livestock pharmaceuticals occurring over time in response to various factors including changing animal health needs or changes in animal populations. - Local revenue estimates use the