A similar proposal was unveiled by the Governor as part of his 2004 budget address.
“Unfortunately, the Governor has again declared a War on Agriculture
by proposing to tax the very backbone of Illinois’ economy. He is
seeking to eliminate the sales tax exemption on agricultural inputs as
an alternative to his failed GRT,” said Sen. Althoff. “It appears we
were successful in our efforts to defeat the GRT this year. However,
the Governor’s latest proposal again cuts to the basics of the Illinois
economy – agriculture.”
This proposal would eliminate the state sales tax exemption for
agricultural inputs, including feed, seed and fertilizer, for most
farms. This would result in $27 million in new taxes on Illinois
farmers.
“If this proposal is approved, the state will now be taxing what
farmers use to produce their crop,” said Sen. Althoff. “This proposal
places Illinois’ agricultural community at a competitive disadvantage
because farmers cannot set their prices to reflect the cost of
producing a crop; instead they are at the mercy of the market.”
Sen. Althoff explained that this proposal is similar to a proposal in
2004, in which the Governor waged a “War on Agriculture” by proposing a
massive tax increases on Illinois farmers coupled with merging duties
of the Department of Agriculture and the Environmental Protection
Agency.
“This proposal wasn’t a good idea for Illinois farmers in 2004 and it isn’t any better in 2007,” said Sen. Althoff.