HB 1399 – Animal feed tax exemption

HB 1399 is the enabling legislation for HJR 99. It exempts animal feed held for retail sale from property taxes. Right now, while feed is tax-free during production and use, it’s unfairly taxed when held as inventory in stores. Removing this tax would reduce costs for feed suppliers and help lower prices for farmers and ranchers, who are already dealing with rising operational expenses. From a fiscally conservative standpoint, this is a smart move—it simplifies the tax code, prevents double-taxation, and supports small agricultural businesses without expanding government spending. 

It must be noted, however, that supporting legislation that uses exemptions as the form of providing tax relief, comes with some reticence. Exemptions inevitably narrow the tax base, shift burdens and make issues like all property tax elimination potentially more difficult.