2025 tax preference review: Agricultural Fertilizer and Seed Wholesaling
25-10 final report | December 2025
Zack Freeman, research analyst
Pete van Moorsel, tax review coordinator; Eric Thomas, legislative auditor
Legislative Auditor's conclusion
The preference meets the legislative goal of providing tax relief for certain commercial fertilizer, pesticide, and seed wholesalers.
Key points
- The 2017 Legislature passed the preference to provide tax relief to wholesalers that distribute agricultural products.
- The preference exempts certain sales of commercial fertilizers, seeds, and pesticides.
- Beneficiaries must have a specific ownership structure described in statute to qualify.
- Fewer than three beneficiaries claim the preference.
Legislative Auditor’s recommendations
The Legislative Auditor makes two recommendations.
Recommendation #1
The Legislature should allow the preference to continue.
The preference meets legislative intent by providing tax relief to certain agricultural wholesalers.
Legislation required: No.
Fiscal impact: Not disclosable.
Implementation date: Not applicable.
Commission recommendation: Endorse without comment (HTML)
Recommendation #2
The Legislature should clarify whether the preference is exempt from the requirements for an automatic expiration date and a tax preference performance statement.
The preference is exempt from both requirements. However, it has a tax preference performance statement. It states that the Legislature intends to extend the preference if the number of eligible wholesalers increased or stayed the same. There is no expiration date, making extension unnecessary.
Legislation required: Yes.
Fiscal impact: None.
Implementation date: At the discretion of the Legislature.
Commission recommendation: Endorse with comment (HTML)
Read the full report
Agricultural Fertilizer and Seed Wholesaling (HTML)