Higher sales tax makes farm exemption more valuable

 

In a glass-is-half-full way, the one percent increase in California sales tax that took effect on April 1, 2009, makes the partial exemption for farm equipment and fuel is more valuable than ever.

Since 2001, farmers may be eligible for exemption from state taxes on qualified purchases of equipment, diesel, propane and equine breeding stock. The law does not apply to local sales taxes.

The exemption shields farmers and ranchers from the state portion of the sales tax, so even though the state sales tax went up, the sales tax that agriculture pays, for the local share of sales tax, did not change.  Since the state share of sales tax went from 5.25 percent to 6.25 percent, agriculture is saving more by not paying the state portion.

You can get more information at the California Farm Bureau Federation website at http://www.cfbf.com/issues/economy/tax.cfm.

 

 

 

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Wednesday, April 08, 2009 10:57:31 AM

 

 

 

 

Monterey County Farm Bureau, Inc., is the private, nonprofit association of farmers and ranchers in California's Monterey County, one of the most productive farm areas in the world.  We work for solutions to the problems of the farm, the farm home and rural communities.  We provide information, representation, programs and services. 

 

 

 

 

 

Sales Tax