SB 176 SIGNED BY THE GOVERNOR: LICENSE PLATES NO LONGER REQUIRED FOR SELF-PROPELLED AGRICULTURE UNITS, EFFECTIVE JULY 1, 2022SB 176 revised provisions regarding self-propelled agriculture units. The bill says any self-propelled agricultural application unit that is purchased for use in this state is exempt from the provisions of this chapter and chapters 32-3 and 32-5. For purpose of this section, the term, self-propelled agricultural application unit, is defined as equipment designed and used exclusively to carry and apply fertilizer, pesticides, or related products for agricultural purposes. This term does not include an application unit attached to a motor vehicle chassis.
The bill exempts self-propelled application units from the title registration (32-3) and annual registration and license plates (32-3) section of the law. These units will no longer be taxed with the 4% excise tax but now taxed at the 4.5% ag sales tax. Members have told us that the cost of the titling and registration costs over a five-year period will make up for the 0.5% increase in sales tax.
We offer a huge thanks to the bill sponsors Senator Mary Duvall (District 24) and Representative Caleb Fink (District 21). Also, to the Department of Revenue who worked with us to ensure no highway funding was lost.