A JOINT RESOLUTION directing the Department of Revenue to evaluate and report on the cost of production of agricultural tax exemption number cards.
Summary
SJR 25 is a joint resolution directing the Kentucky Department of Revenue to study and report on the cost of producing physical agricultural tax exemption cards for participating farmers. The resolution is tied to Kentucky’s existing agricultural sales and use tax exemption program, which allows eligible farmers to self-certify and use an assigned exemption number when purchasing qualifying agricultural items. The bill does not create the card program itself; instead, it asks the department to evaluate whether issuing a physical card would be feasible and how much it would cost to produce, either in-house or through a third party.
The report must also include information from other states that issue physical agricultural tax exemption cards, giving lawmakers comparative implementation data. The Department of Revenue is required to submit the report to the Legislative Research Commission by December 1, 2025, for referral to the Interim Joint Committee on Agriculture and the Interim Joint Committee on Appropriations and Revenue. Because this is a resolution directing a study, it does not directly amend tax statutes, but it could inform future administrative changes or legislation affecting the agricultural exemption process.
Impact
SJR 25 would not immediately change Kentucky tax law or the existing agricultural sales and use tax exemption statute. Its practical effect is to require the Department of Revenue to gather cost and implementation information that could influence whether the state adopts a physical exemption card for farmers in addition to the current number-based verification system. The resolution could affect the Department of Revenue, Kentucky farmers, and retailers who verify exemption status, and it may shape future policy decisions on agricultural tax administration and program modernization.
Sentiment
The available voting history suggests strong support for the resolution, with the Senate passing it 36-0 on third reading. The bill text itself presents the proposal as a practical improvement for farmers, emphasizing convenience and ease of use at the point of purchase. No committee transcript is available, but the unanimous vote indicates broad agreement that studying the issue is worthwhile and noncontroversial.
Contention
There is little visible opposition in the available record, but the main policy question is whether a physical card is necessary or cost-effective given the existing self-certification and searchable database system. Potential points of concern include the administrative and production costs of issuing cards, whether a physical card would duplicate current verification tools, and whether the benefits to farmers justify the expense. Any debate would likely center on implementation details rather than the underlying agricultural tax exemption program.