Arizona governor signs bill cutting taxes on farm fertilizer
PHOENIX (AP) — Gov Doug Ducey has signed legislation eliminating sales taxes farmers pay for fertilizer and pesticides.
The proposal signed into law Friday will cost the state about $15 million a year and was pushed by Republican Rep. Tim Dunn. He is a Yuma farmer who said Arizona is one of just two states that tax those items.
The state has levied taxes on the products since the state sales tax was put in place in the 1930s. Most Democrats opposed the measure as a special interest tax cut pushed by a company that lost a recent court case where it sought an exemption.
Dunn says the products are a cost of production that shouldn’t be taxed.
The bill specifically says the new tax exemptions don’t apply to medical marijuana growers.