HARRISBURG – The PA Senate Finance Committee approved Senate Bill 325 to clarify how farmers can qualify for sales tax exemptions for off-road vehicles used in farming operations. Farmers currently qualify for sales tax exemption on the vehicles called MAV’s which are used for hauling small equipment and for routine tasks. Blair County Sen. Judy Ward said that her measure is needed because the state Department of Revenue has been auditing farmers over how the MAV’s are being used. She said one farmer when questioned by auditors asserted that his MAV was used  to repair fences. Revenue staff then claimed repairing fences was not directly related to farming and order the farmer to repay sales taxes. Ward said that her bill provides a clear definition of farming activities to help prevent the needless audits. The state Senate could take up the legislation later this month.

SEN. JUDY WARD