Sonnenberg Proposal to Reinstate Ag Tax Exemption Clears Committee

DENVER—Yesterday, State Rep. Jerry Sonnenberg’s proposal to rollback last year’s tax increase on certain agricultural products cleared a key legislative hurdle with the approval of the House Finance Committee on a party line vote.

Sonnenberg’s House Bill 11-1005 repeals House Bill 10-1195, which suspended a tax exemption on the purchase of essential products that many ranchers rely on. A piece of the controversial “Dirty Dozen,” Sonnenberg says the proposal has hit Colorado’s agricultural communities hard at a time when they can least afford.

“Repealing this tax increase on farmers and ranchers is a top priority,” Sonnenberg said. “Increasing taxes on already struggling families was a bad idea then and now deserves to be revisited by the legislature.”

Sonnenberg says he has been besieged by his constituents who are struggling under the burden of increased taxes on essential products in an already down economy.

“As the owner and operator of a small farm, I know how even a minor cost increase can affect the bottom line,” Sonnenberg said. “I am happy to see this proposal to repeal this tax moving forward.”

HB 1005 will now head to the House Appropriations Committee for further consideration.

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