Chicken bedding materials

From the 2024 DOR Tax Exemption Study

82.08.920; 82.12.920 - Chicken bedding materials Description Farmers who raise chickens for sale as agricultural products are exempt from the sales and use taxes on purchases of chicken bedding materials. Qualifying bedding materials accumulate and facilitate the removal of chicken manure. Purpose This exemption supports the poultry industry. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.480 $0.490 $0.510 $0.520 Local Taxes $0.140 $0.140 $0.150 $0.150 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.449 $0.510 $0.520 Local Taxes $0.000 $0.117 $0.150 $0.150 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Specific data for farmer purchases of bedding materials for chicken houses is not available. Therefore, used egg and boiler production to calculate cost of bedding as a percent of total. - Annual growth of 6% based on historical values of egg production. - Local revenue estimates use the rural average local sales and use tax rate of 1.88%. Data Sources -