Cattle Industry Board; collection and disposition of assessment by handler.
Impact
This legislation specifically impacts the Code of Virginia, mainly §3.2-1306, which governs the assessment collection by handlers. It represents an effort to ensure that the cattle industry contributes fairly to state revenues while providing a structured process for how and when these assessments should be remitted. By extending the assessment collection period to 2028, the bill aims to provide long-term stability for both tax administration and cattle operations.
Summary
House Bill 2297 amends provisions related to the collection and disposition of assessments by handlers in the cattle industry within Virginia. The bill mandates that starting January 1, 2019, every handler will deduct a fee of 50 cents per head from the proceeds of sales owed to the respective owners of cattle and calves sold in the Commonwealth. Exceptions are made for dairy cows returning to farms, animals selling for less than $100, and cattle weighing less than 100 pounds. This change aims to streamline the assessment process and enhance tax collection efficacy within the state’s agriculture sector.
Sentiment
The sentiment surrounding HB 2297 appears to be generally supportive among agricultural stakeholders, especially those involved in the cattle industry, who recognize the need for a structured assessment process. However, there may be concerns from smaller producers fearing that such mandatory fees could impact their profit margins, especially in the case of low-value cattle sales. If transparency regarding the usage of collected assessments is ensured, it could mitigate some of those fears.
Contention
Notable points of contention may arise over the exceptions included in the bill, particularly regarding dairy cows and lower-value cattle. Some stakeholders may argue that these exceptions could create disparities in how different types of cattle sales are treated, potentially disadvantaging certain producers. Furthermore, the management and allocation of collected funds by the Tax Commissioner and the Cattle Industry Board could also be scrutinized, emphasizing the need for clear accountability and equitable distribution of resources.