A bill in the Alabama Legislature aims to stop the erosion of farm equipment sales, jobs and revenue to neighboring states. State Rep. Paul Lee, R-Dothan, is sponsoring HB 86 to remove the 1.5 percent state sales tax from new and used farm equipment and parts. He said investing in the sales tax exemption could help Alabama avoid losing millions in sales and jobs.

"Over the last several years, we've seen the states of Tennessee, Florida and Georgia remove their state sales tax on farm equipment," Lee said. "Not only are we losing sales, we're seeing the potential for people to lose their jobs."

State Rep. Paul Lee, R-Dothan, left, and SunSouth Dothan store manager examine a piece of farm equipment at the dealership. Lee is the sponsor of a bill to eliminate state sales tax on farm machinery and parts.

State Sen. Tom Whatley, R-Auburn, is sponsoring the Senate companion, SB 69.

"I hope to see this bill pass, because it will save jobs in Alabama and lower taxes," Whatley said. "Our state is losing business to surrounding states that have been more proactive and have already removed sales tax on farm equipment."

Alabama Farmers Federation State Legislative Programs Director for the House of Representatives David Cole said the tax exemption will help ensure farmers have access to equipment, parts and service when they need it most.

"At harvest time, a farmer can't afford to drive hundreds of miles for repairs or wait days for a part," Cole said. "By leveling the playing field with neighboring states, this bill helps keep local equipment dealers in business so they can serve farmers, create jobs and generate revenue for our communities."

HB 86 is assigned to the House Ways and Means Education Committee, and SB 69 is assigned to the Senate Finance and Taxation Education Committee.

Click here for more on the Alabama Farmers Federation's 2014 legislative agenda.  

Gov. Robert Bentley used his 2014 State of the State address to again emphasize the importance of providing jobs and education for the people of Alabama. In the Jan. 7 speech, he touted Alabama's 6.2 percent unemployment rate as the lowest in the South and said the state's greatest asset is its workforce.

The governor mentioned success of the Alabama Transportation Rehabilitation and Improvement Program (ATRIP) and the Rural Assistance Match Program (RAMP) in providing more than $1 billion for road and bridge improvements. He also praised the work of the College and Career Ready Task Force in providing recommendations for job skills educational training. Alabama Farmers Federation Young Farmers Director Jennifer Himburg serves on the task force.

ATRIP, RAMP and the College and Career Ready Task Force were major Federation priorities in previous legislative sessions.  

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David Cole - State Legislative Programs Director for the House 

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