The Michigan Senate today passed legislation—unanimously and with bipartisan support—to preserve agriculture’s existing sales and use tax exemptions. Amendments to clarify the law were pursued by Michigan Farm Bureau (MFB), in part, after recent farm audits exposed misinterpretations by the Department of Treasury.

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“County Farm Bureau members demonstrated their grass-roots strength by sending more than 1,800 emails to their state representatives and senators, and Governor Rick Snyder,” said MFB Legislative Counsel Rebecca Park. “To keep providing safe, abundant and affordable food, farmers need the ability to reinvest in their farms, not pay additional taxes.”

Messages from nearly 600 farmers statewide urged support of House Bills 4561 and 4564 to prevent farm families from potentially being liable for millions of additional tax burden.

Park said the legislation, in summary:

1. Clarifies existing law that farm-related equipment and technology purchases are not subject to the sales and use tax.
2. Allows tangible personal property that becomes part of the real estate to remain eligible for the agriculture sales and use tax exemption.

The House must now agree with the Senate-passed legislation before the bills are sent to the Governor. Farm Bureau members will be notified in the event additional contacts are needed.