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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | December 28, 2022 09:40 AM |
|---|---|
| From: | Representative Brett R. Miller |
| To: | All House members |
| Subject: | Sales Tax Exemption for Fencing Used in Agriculture |
| In the near future, I will re-introduce legislation (HB 2386 from 2021-22) that would amend the Tax Reform Code of 1971 to exclude fencing materials and supplies used for agricultural purposes from sales tax. This issue was brought to my attention by a constituent who was denied a sales tax exemption for temporary fencing supplies he purchased for use on his family farm. Temporary fencing generally consists of small step-in posts and single-strand high tensile wire that is often moved from pasture to pasture every few days, then taken up and stored at the end of the season. Current law already exempts “tangible personal property or services which are directly used in farming, dairying or agriculture,” however the Department of Revenue does not consider agricultural fences used directly in a farming operation as exempt from sales tax. Despite attempts to correct this misapplication of the current law with the Department, they continue to reject the exemption for both permanently affixed and temporary agricultural fencing. In order to provide clarity to Pennsylvania’s farmers, this legislation establishes that fencing used for agricultural purposes and is directly used in farming operations will be exempt from sales tax. Agriculture is Pennsylvania’s number one industry. It contributes over $135 billion, about 18%, of the Commonwealth’s economy and supports over half a million jobs. Farmers have faced extraordinary challenges in recent times with volatile commodity prices and supply chain issues in addition to all the typical variables that traditionally come with farming. By providing this relief from sales tax for fencing purchased for agricultural use, we can make our tax code consistent as it relates to other farm-related allowable sales tax exemptions and also help our farmers be successful. The bill passed the House Finance Committee but did not advance by the end of session. Co-Sponsors from last session include: B. MILLER, PASHINSKI, RYAN, STAMBAUGH, ROTHMAN, SMITH, MILLARD, GLEIM, GREINER, ZIMMERMAN, ROWE, GUENST, OWLETT, FEE, RADER AND MOUL. Please join me in co-sponsoring this legislation to provide a sales tax exemption to our farmers who purchase fencing for agricultural purposes. |
Introduced as HB1340