FISCAL NOTE

House Bill 412 as passed the House of Representatives would exempt producer value added agricultural products from sales tax, which would decrease sales tax receipts to the Education Trust Fund, and county and municipal funds annually by an undetermined amount dependent on the amount of gross receipts derived from the sale of producer value added agriculture products that is sold by a producer, the immediate family of a producer, or an employee of the producer.

As amended and reported by the Committee on Finance and Taxation Education, the exemption provided by this bill would be available beginning October 1, 2022 until September 30, 2027, unless extended by an act of the Legislature.

Further, this bill would require producers of value added agricultural products to file annual information reports regarding products that have been exempted by this bill that are sold by the producer, their family or their employees.