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SJR 25

A JOINT RESOLUTION directing the Department of Revenue to evaluate and report on the cost of production of agricultural tax exemption number cards.

2025 Regular Session

Directs the Kentucky DOR to study the cost and feasibility of issuing a physical agricultural tax-exemption card, and to report by Dec 1, 2025 to inform future action.

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Bill Summary · SJR 25

Summary — SJR 25

Title: A JOINT RESOLUTION directing the Department of Revenue to evaluate and report on the cost of production of agricultural tax exemption number cards
Classification: Joint resolution
Subjects: Agriculture; State agencies; Taxation; Sales and use; Reports mandated

Purpose

SJR 25 directs the Kentucky Department of Revenue (DOR) to study and report on the costs and implementation considerations for issuing a physical agricultural sales-and-use tax exemption card to farmers who participate in the State’s agricultural tax-exemption number program. It does not itself create a card program or change tax law — it requires a cost/implementation report to inform possible future legislative action.

Background

  • In 2020 the General Assembly (Senate Bill 148) created an agricultural sales-and-use tax exemption number program allowing eligible farmers to self-certify purchases and use an assigned exemption number. Retailers may verify numbers via a searchable DOR database.
  • Stakeholders have expressed a desire for a physical card to simplify in-person purchases and verification.

Key provisions

  • Directs DOR to compile a report on the costs to produce a physical agricultural tax exemption card, including options for:
    • In-house production by the Department, and
    • Third-party (vendor) production.
  • Requires the report to include implementation data and practices from other states that issue physical agricultural tax exemption cards.
  • Reporting deadline: DOR must submit the report by December 1, 2025, to the Legislative Research Commission (LRC) for referral to:
    • Interim Joint Committee on Agriculture, and
    • Interim Joint Committee on Appropriations and Revenue.

Who is affected

  • Participating farmers (those already holding agricultural tax exemption numbers) — potential beneficiaries of easier in-person verification.
  • Retailers and purchasers who must verify exemption status at point of sale.
  • Kentucky Department of Revenue — tasked with compiling the study and potentially implementing any future card issuance program.
  • Potential third-party vendors if the state opts for outsourced production.
  • State budget/process — while this resolution itself contains no appropriation, implementation of card issuance could require funding and administrative changes.

Timeline & procedural notes

  • Introduced: November 22, 2024.
  • Report due to LRC: December 1, 2025.
  • The report will inform interim legislative committee review; further action (funding, rulemaking, or statute) would be required to implement a physical card system.

Potential impacts / considerations

  • Short term: information gathering and comparative analysis of other states’ models and costs.
  • Medium/long term: possible improved ease-of-use for farmers and reduced point-of-sale friction for retailers; however, issuance could generate one-time production costs and ongoing administrative expenses (card replacement, database integration, security features).
  • Any actual rollout would likely require appropriation, procurement, and administrative policy decisions.

Sponsors & status (as listed)

  • Sponsors/co‑sponsors: Kimberly A. Lightford (primary), Norine K. Hammond (primary), and others (list provided in bill file).
  • Status entries provided: introduced Nov 22, 2024; various committee referrals; reported and adopted actions noted in 2025; report deadline Dec 1, 2025.

This resolution is informational and preparatory: it seeks cost and implementation data to help the General Assembly evaluate whether to authorize and fund issuing physical agricultural tax exemption cards.

Compiled from official sources — confirm details with the bill’s official record.

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