The agricultural classification and assessment on real property must be protected so farmers can afford to keep land in agricultural production. The Taxation Realignment Commission (TRAC), formed by the legislature in 2009, which has been meeting since September 9, 2009, is scheduled to submit its report to the General Assembly by March 14, 2010. Any recommendations made to change the classifications and assessments on agricultural land could become monumental to the agricultural industry.
Another issue related to property taxes is point of sale reassessments on transfers of property. Local governments and realtors are at odds over this matter, which is certain to be a major legislative issue in 2010. Agricultural buildings and structures could be negatively impacted by point of sale reassessments and agricultural operations as a whole could be harmed should counties be forced to find revenue through new and increased fees or millage rates. SC Farm Bureau will work to keep the vital provisions of Act 208 intact for the future wellbeing of SCFB members and other agribusiness operators.
Exemptions afforded farmers on input and production purchases are essential and must be protected. Simply put, farmers will be forced out of business if forced to pay sales tax on equipment, fertilizers, fuel, seed, chemicals, parts, etc. Again, the report from the TRAC Commission will be important in determining how SC Farm Bureau will respond. SC Farm Bureau was successful in having an agricultural representative appointed to the TRAC and in surfacing farmers to testify on ag-tax issues. SCFB will continue to monitor TRAC actions to insure an adequate understanding exists of the importance and benefits of current legitimate classifications and assessments of agriculture property.
The House passed a bill to increase the cigarette tax in 2009. That bill is now in the Senate. SC Farm Bureau is supportive of a cigarette tax increase only if a portion of the generated revenue (1 cent) is directed to the Department of Agriculture for marketing and branding SC-grown commodities. Tobacco farmers impacted by the tax increase should realize benefits of a marketing program will help them transition to alternative crops.
SC Farm Bureau is opposed to tax increases in general unless they benefit agriculture. SCFB will continue to monitor the cigarette tax increase debate and lobby in favor of a portion of the revenue from a proposed increase going towards the SC Department of Agriculture’s “South Carolina Certified” marketing and branding campaign and other programs.Natural Resources
A bill regulating surface water withdrawals in SC is in the Senate Agriculture and Natural Resources Committee and will be taken up early in the 2010 session. That bill acknowledges agriculture is a unique industry and should be given top priority water use behind only emergency and human consumption uses. The difference between agriculture and other industries is that when farmers need water for irrigation, water sources are typically at their lowest stages due to diminished rainfall. Without the essential ability to irrigate, crops and livestock will suffer or even perish.
SC Farm Bureau supports the bill as it exists in the Senate Agriculture and Natural Resources Committee requiring surface water withdrawals to be registered but not permitted.
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