A proposal to exempt veterinary medicines from the state's six percent sales tax got a hearing in the house Monday. Proponents say Kentucky is one of the few states taxing vet supplies.
Bill Sponsor Michael Meredith of Brownsville told committee members he knows of a farmer who went to Tennessee to buy $2,000 worth of veterinary supplies. Kentucky Cattlemen's Association Director Dave Maples says the tax on these items amounts to significant money. "You're looking at a lot of money when farmers purchase these animal health products," said Maples. "You're looking at $41 million in sales."
The tax exemption would pertain to veterinary medical supplies for cattle, poultry, and horses. It's estimated to cost the state up to $9 million a year. Knott County Representative John Short expressed concern about the proposal. "There's a lot of other things that are on the table right now wanting tax deductions," said Short. "Like I say, we lost $200 million last year because we did not freeze our gas tax. And, I just know how much more we can keep losing."
Bill Sponsor Michael Meredith says additional agriculture-based economic activity could offset the tax loss on vet supplies. The committee took no action. The issue is expected to resurface during next year's budget session.?
