Senate File 321 - Introduced SENATE FILE BY BOETTGER Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the sales tax exemption for farm machinery and 2 equipment used in agricultural production. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2258XS 82 5 dea/gg/14 PAG LIN 1 1 Section 1. Section 423.3, subsection 8, paragraph a, Code 1 2 2007, is amended to read as follows: 1 3 a. The farm machinery and equipment shall be directly and 1 4 primarily used in production of agricultural products, 1 5 including any of the following activities: 1 6 (1) Coming into actual physical contact with the soil or 1 7 crops during planting, cultivating, harvesting, or soil 1 8 preparation. 1 9 (2) Inspection or repair of fences. 1 10 (3) Livestock monitoring. 1 11 (4) Viewing or inspection of crops. 1 12 EXPLANATION 1 13 This bill provides, for purposes of state and local sales 1 14 taxes, that inspection and repair of fences, livestock 1 15 monitoring, and viewing and inspection of crops are activities 1 16 related to production of agricultural products. The sales 1 17 price of farm machinery and equipment used in production of 1 18 agricultural products is exempt from state and local sales 1 19 tax. 1 20 LSB 2258XS 82 1 21 dea:rj/gg/14