Senator Casey Murdock plans to file legislation which would make it easier for farmers and ranchers to renew their sales tax exemption card. This comes after his interim study this week examining how the agriculture sales tax exemption process currently works. Murdock says overall, the process is running smoothly but there is room for improvement.
“When the Oklahoma Tax Commission (OTC) began requiring a Schedule F for agriculturalists to qualify for their sales tax exemption, we passed Senate Bill 422 to add additional documentation farmers and ranchers could provide to OTC in lieu of the Schedule F,” Murdock said. “After working with the tax commission, I’ve found these changes are working – there’s no backlog of producers getting their card, and denials are typically because the applicant hasn’t correctly filled out the form. However, we also learned the vast majority of the 110,000 ag sales tax exemption cards issued each year are renewals, so now we need a way to make the renewal process easier and more convenient.”
The change would come to the application. It would include an option that will allow a farmer or rancher to indicate it is a renewal, not a new request for the exemption. They also will be able to confirm there’s no change to the operations over the past year. Renewal is automatic if there are no changes.
“This small change would help make the renewal process convenient for the farmer or rancher, as well as streamline the process for OTC,” Murdock said. “I also would like to include a provision in the measure that would clarify the term ‘farming for profit,’ to ‘intend to farm for profit.’ I’m hopeful that together with the OTC and the support of my colleagues in the House and Senate, we can make these changes that would be beneficial to everyone involved in the process.”
Murdock also wants to reassure farmers and ranchers that the Legislature does not plan to change the ag sales tax exemption anytime soon.
Murdock’s bill would be up for consideration when the next legislative session starts in February 2022.
