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HB 2374

Exempting from the sales tax all-terrain vehicles and utility terrain vehicles used as farm equipment

2025 Regular Session Introduced by Marshall Clay and 2 co-sponsors

HB 2374 exempts sales tax on ATVs and UTVs used as farm equipment, easing costs for farmers and boosting local agricultural economies.

To House Finance
#taxation
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Bill Summary · HB 2374

Summary of HB 2374: Exempting Sales Tax on All-Terrain Vehicles and Utility Terrain Vehicles Used as Farm Equipment

Purpose and Intent

House Bill 2374 aims to exempt all-terrain vehicles (ATVs) and utility terrain vehicles (UTVs) from sales tax when they are used as farm equipment. The bill seeks to support agricultural operations by reducing the financial burden on farmers who utilize these vehicles for their farming activities.

Key Provisions

  • Sales Tax Exemption: The bill specifically exempts the purchase of ATVs and UTVs from state sales tax if they are used primarily for agricultural purposes.
  • Definition of Use: The legislation defines the criteria under which these vehicles qualify for the exemption, emphasizing their role in farming operations.
  • Implementation Date: If passed, the exemption would take effect immediately, allowing farmers to benefit from the tax relief as soon as they purchase qualifying vehicles.

Affected Parties

  • Farmers and Agricultural Producers: The primary beneficiaries of this bill are farmers who rely on ATVs and UTVs for various tasks on their farms, such as transporting goods, managing livestock, and performing maintenance.
  • Dealers and Retailers: Businesses that sell ATVs and UTVs may also see an increase in sales due to the tax exemption, potentially leading to economic growth in the agricultural sector.

Procedural Aspects

  • Current Status: As of now, HB 2374 has been introduced and is currently under consideration by the House Finance Committee.
  • Timeline: The bill was introduced on January 31, 2025, and will undergo further discussions and potential amendments before a vote is taken.

Conclusion

HB 2374 represents a legislative effort to alleviate some of the financial pressures faced by farmers in Kansas by exempting certain vehicles from sales tax. This measure could enhance the operational efficiency of agricultural practices and stimulate local economies tied to farming activities.

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

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