Steate legislature addresses ag issues
The introduction of new bills was the major action as lawmakers completed a second week of session. Over 1000 new bills have been introduced.
REMINDER: Watch the General Assembly Live by visiting the General Assembly’s official website at www.legislature.state.tn.us.
These are general explanations of some of the issues expected to be considered this year.
Regulatory Control Over Waters of the State: There are a growing number of water quality violations involving small, sporadic flowing ditch channels with no commonly recognized stream characteristics. The Department of Environment and Conservation considers these headwater streams and is focusing regulatory protection over these types of drains. A coalition of business, industry, construction, local government and farm interests is developing legislation and judicial strategies to set reasonable boundaries on the state’s regulatory authority.
Sales Tax Exemption for farm trailers: Livestock trailers are exempt from sales tax in Tennessee. Flatbed and grain trailers are not. Legislation has been introduced to exempt all trailers used for agricultural purposes from the sales tax. The Department of Revenue has resisted such an exemption in the past based upon the belief that too many nonfarmers purchased flatbed trailers. Now, with the farmer certification certificates it should be easier to identify farmers and significantly reduce the fiscal impact to the state for such an exemption.
Sales Tax Exemption for water: The recent drought issues have heightened the desire by many for an exemption on water purchased for agricultural purposes.
Manufacturers currently have such an exemption if the water is on a separate meter or if by other evidence a manufacturer can establish the water is used exclusively for manufacturing, coming into direct contact with the article being manufactured.
Water Supply Infrastructure: As a result of the ’07 drought, several lawmakers as well as the Governor are considering legislation to address the infrastructure of water needs and supply in Tennessee.
Drivers License for Legal Immigrants: As lawmakers replaced the driving certificates with a temporary driver’s license in ’07, a number of legal immigrants were prohibited from obtaining a drivers license.
The new temporary license does not allow those who will be in Tennessee for less than a year to obtain a temporary license. Therefore, individuals who are in Tennessee on legal visas for less than one year or who have less than a year remaining for their stay are not allowed a license. H-2A workers are among the many temporary legal visitors who fall within this category. Legislation to correct the oversight will be offered.
Immigration: Efforts to overhaul the nation’s immigration laws again fizzled at the national level. As a result, Tennessee lawmakers continue to take widely divergent approaches to dealing with the perceived influx of illegal immigrants based on the belief by many that social services and schools are strained by illegal immigration.
Minimum wage: The minimum wage debate in the General Assembly continues.
Actions to raise the minimum wage at the federal level help remove some pressures for a state minimum wage in Tennessee.
State Revenue Estimates Down: Economists are predicting a budget shortfall of $147- $240 million for fiscal year 2007-2008. Sales, tobacco and corporate taxes are all expected to be lower. The 42-cent increase in the tobacco tax passed in ’07 is generating less revenue than the $239 million originally forecast. Legislative leaders believe the shortfall can be handled without dipping into the rainy day fund however, they caution it may have an impact on new expenditures proposed during the 08 legislative session.
Streamline Sales Tax Initiative: The legislature first passed the streamlined sales tax law in ’03 but implementation has been delayed several times. In January ’08, several provisions took effect including the section pertaining to certifying farmers for exempt purchases. Expect possible legislation to address shortfalls in the process as they are discovered.
Transportation of Wide Loads ‘ Hay exemption: Most vehicles are limited to a maximum width of 8 feet. Loads of rolled alfalfa hay are allowed up to a maximum of 10 feet in width as long as the load is transported only during daylight hours, within a 50 mile radius of home and not on the Interstate highway system. Legislation is being introduced to remove the reference to alfalfa in order that the provision applies to all hay. The legislation will also accommodate the overlap that may occur when two bales 5 feet wide are placed side to side. In addition, the 50 miles radius and prohibition to Interstate travel will be removed.