Assembly Passes Bill Revoking Farm Tax Breaks

SACRAMENTO, Calif. (June 6, 2003) – The Assembly Thursday night barely passed a bill that would revoke about $80 million in tax breaks for farmers and redirect the funds to pay for farm workers’ medical coverage.

AB 923 passed, despite the opposition of 33 Republicans and farm-area Democrats. It moves to the Senate with its chances of becoming law uncertain.

The bill revokes sales tax exemptions on diesel fuel, farm machinery and other agricultural items that were approved during the settlement for the 2001 budget. Small farmers – defined as those with receipts of less than $250,000 annually from the sale of agricultural products – would retain most of the tax breaks.

Governor Gray Davis has not issued a position on the legislation.

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