Last week's introduced bill taxes agriculture an additional 2.9% (state sales tax) on every purchase of bull semen, agriculture compounds and pesticides.  This, over 7 million dollar per year tax on our industry will cost individuals from hundreds to thousands of dollars a year.  All coming at a time when the economy is challenging and margins are thin. 

HB 1195 is of direct importance to the agricultural industry. According to the calendar, this and the other 11 bills related to the credits and exemptions will be heard in the House Finance committee on Wednesday the 27^th at noon in the Legislative Services Building across from the capitol.  CCA will be on hand to provide testimony, and invite any producers to join us.  To read the bill, please follow this link.

GENERAL INFORMATION

All sales and purchases of pesticides for use in the production of agricultural and livestock products and agricultural compounds that are consumed by, administered to, or otherwise used in caring for livestock are exempt from Colorado state sales and use tax; state-collected local sales and use tax; and any special district sales and use tax.  This exemption also applies to all sales and purchases of semen for agricultural or ranching purposes. "Agricultural compounds" means:

• Insecticides, fungicides, growth regulating chemicals, enhancing compounds, vaccines, and hormones;
• Drugs, whether dispensed in accordance with a prescription or not, that are used for the prevention or treatment of disease or injury in livestock; and
• Animal pharmaceuticals that have been approved by the Food and Drug Administration.

Due to the likelihood that these bills will be moved through each house in the very near future, CCA members need to place calls into their elected officials voicing your opposition in the next few days. Of additional importance is to contact the finance committee and voice your opposition. 

Act today to protect the financial wellbeing of Colorado's agriculture industries. Agriculture is a vital part of Colorado's future, providing more then 105,000 jobs, 4.4% of the state's total, and contributing nearly $16 billion to the state's economy.

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   TAKE ACTION NOW!