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SJR 25

Constitutional amendment; creating the Taxpayer's Bill of Rights.

2026 Regular Session Introduced by Micheal Bergstrom

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.

Second Reading referred to Rules
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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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