Agricultural News
Lawmaker Proposes Elimination of 'Farm Diesel' Tax
Tue, 21 Jan 2014 12:10:40 CST
State Rep. Harold Wright said today he wants to save everyone a headache - farmers, red-dyed diesel vendors and tax collectors.
"There is a type of diesel that is sold for off-road use, mostly for agricultural needs, that we tax, but very inefficiently," said Wright, R-Weatherford. "The federal government doesn't tax it, but the State of Oklahoma puts a sales tax on it, and there is a lot of paperwork for everyone involved because modern pumps aren't set up to track it electronically. I am proposing that we eliminate this sales tax. It's the kind of tax cut that everyone can get behind, no matter their political philosophy."
House Bill 2387, by Wright, would eliminate a tax on red-dyed diesel. Although the tax represents only a tiny portion of state revenue, it is one of the more costly taxes to collect because of the amount of paperwork involved, according to the Oklahoma Tax Commission.
"For only a drop in the bucket, revenue-wise, we are saving farmers and businesses trouble and money," Wright said.
The Second Regular Session of the 54th Legislature begins February 3, 2014.
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