Plant Sales Tax Places Unfair Burden on Illinois Farmers

The Problem:

Did you know that all Illinois farmers are exempt from paying sales tax on seed and "farm Machinery and equipment" so long as those items are used solely for production agriculture? But starter plants, like fruit and nuts trees starts, do not fall in that category and are not tax exempt.

Sales tax on starter plants creates a disadvantage for Illinois farmers, especially young and beginning farmers and fruit and nut tree farmers, who must pay higher costs to operate or start their farm business in Illinois.

Background:

In 2015, the Savanna Institute and other Illinois non-profit organizations introduced a legislative amendment to the current Revenue Retailers Occupation Tax that requested to add "starter plants" to the tax exemption language. Due to the Budget impasse in 2015, this bill and any other bill that sought to alter the Illinois budget,  was shelved.

Are you an Illinois farmer that has paid sales tax on your plant starts?

We are seeking to speak with farmers to learn more about your challenges of navigating this system with increased sales tax costs and how that has impacted your farming operation. Please fill out this form and Liz Rupel, the Alliance's Lead Organizer, will be in touch!