Good News for Kansas Ag: Governor Signs SB 265

Kansas Governor Sam Brownback signed into law a bill containing two measures important to Kansas agriculture. The Farm Equipment Manufacturers Association commends the Kansas Legislature for passing Senate Bill 265.

The change in tax law will allow livestock producers to offset capital gains on the sale of cull cows and breeding livestock against business operating losses. The ability to offset capital gains tax had been allowed in previous tax code, but in 2013 a change in code inadvertently removed it. The passage of SB 265 restores it and will once again allow farmers and ranchers to appropriately manage their businesses tax liability. The change is particularly important to the dairy industry and will allow Kansas to remain the fastest growing dairy state in the country.

The bill also allows for capital investment in agriculture to be afforded sales tax exemption similar to that of other industries when an expansion or investment exceeds $50,000.

Both of these issues have significant impact on the agriculture industry and will have long-term influence on economic growth for our industry in Kansas.