Bill to Help Rural Colorado Passes House

Repeal of ‘ag tax’ receives overwhelming bipartisan support and moves to Senate

DENVER – State Reps. Jerry Sonnenberg and Jon Becker’s bill that helps Colorado farmers and ranchers passed the House today with support from both Republicans and Democrats and will now go to the Senate for consideration. 

Sonnenberg and Becker’s House Bill 11-1005 repeals HB 10-1195, which suspended a tax exemption on the purchase of essential products that many farmers and ranchers rely on.  HB 10-1195 was one of the “Dirty Dozen” tax increases passed by the Democrats last year.  HB 11-1005 was included as part of the recently passed negotiation deal.

“With the economic hardships that many rural Coloradans face, the repeal of the ‘ag tax’ will give ranchers and farmers the opportunity to grow their agribusinesses without burdening them with tax increases,” said Sonnenberg, R-Sterling.

This bill reinstates the exemption from sales and use taxes for the sale or storage, use, or consumption of material used in caring and breeding for livestock, as well as pesticides for use in the production of agricultural and livestock products.

“The repeal of the ‘ag tax’ is an economic win for rural Colorado,” said Becker, R-Fort Morgan.  “All the money that would have been used to pay for the tax increase will now stay with Coloradans to help their businesses grow and make more jobs.”

HB 11-1005 passed with overwhelming bipartisan support in the House.

HB 10-1195 suspended the tax exemption through June 30, 2013. HB 11-1005 reinstates the tax exemption two years early. 

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