Texas House Bill HB3030

Texas 2009 - 81st Regular

• Out of House Committee: 5/1/09

Caption

Relating to an exemption from the sales and use tax for machinery and equipment used in an agricultural aircraft operation.

Impact

The impact of HB3030 on state laws primarily revolves around amendments to the Texas Tax Code. By exempting specific machinery and equipment from sales and use taxes, the bill encourages investment in agricultural practices that may have previously been financially prohibitive due to tax liabilities. The exemption not only aims to support local farmers but also seeks to promote the growth of agricultural operations that utilize technological advancements like aerial application, which are critical for modern agricultural productivity.

Summary

House Bill 3030 proposes an exemption from the sales and use tax for machinery and equipment utilized in agricultural aircraft operations. This legislation aims to reduce the financial burden on agricultural operators who rely on aircraft for various farming activities, particularly those involved in pest control, soil treatment, and agricultural product dissemination. The bill's focus on agricultural aircraft suggests a targeted approach to support farmers in enhancing their operational efficiency and productivity through aerial application methods.

Contention

The bill may face points of contention regarding its implications for state revenue and the fairness of tax exemptions. Critics may argue that while supporting agriculture is important, the loss of tax revenue from these exemptions could impact funding for public services. Furthermore, there may be discussions about whether such a specific exemption is justified compared to broader agricultural tax relief measures, particularly in a diverse state economy where numerous sectors might also be in need of support.