Dairy and Poultry Farmers Would be Hit Hard by New Taxes

Guglielmo: this could really hurt farmers who are already struggling to survive.

Hartford, CT – State Senator Tony Guglielmo (R-Stafford) is concerned new proposed taxes by the majority party on the state’s Finance Revenue and Bonding Committee would cripple farms in Connecticut, like Fairvue Farm in Woodstock. Today, Republicans held a public informational hearing on the majority party’s proposal for new taxes. Sen. Guglielmo sites a new tax on veterinarian services as egregious.

Senator Tony Guglielmo along with Paul Miller, owner Fairvue Dairy Farm in Woodstock, at the legislative office building in Hartford before a public hearing to speak out against new taxes

“The Veterinarian service tax could really hurt farmers who are already struggling to survive,” said Sen. Guglielmo. “It’s not just about visits with your dog or cat. These farms have livestock to take care of. That tax bill will be a huge cost.”

As the co-chair of the general assembly’s Rural Caucus Sen. Guglielmo has a number of farms in his district like Fairvue Dairy Farm in Woodstock Connecticut which has more than 1,100 Holstein milking cows. Fairvue is also one of the farms behind the successful brand name the “Farmers Cow” and has been promoting Connecticut dairy businesses for years, but this new tax could hurt that initiative.

At first it was unclear if farmers were exempt from the tax. But an inquiry to the State Department of Agriculture and State Department of Revenue Services tax specialists confirmed any veterinarian service provided to farmers would be taxable.

Paul Miller, owner Fairvue Farm said, “We spend hundreds of dollars every month to have veterinarian services provided to our milking cows. The vets come in twice a week and charge hourly fees. A service tax on this is going to be extremely expensive.”

Sen. Guglielmo said, “Medical services for livestock are a necessity, not a luxury and therefore should not be taxed.”

Poultry farmers would also be greatly affected by the new vet tax. Currently, there are more than 5 million chickens in Connecticut. The Department of Agriculture recently issued an alert to poultry farmers about the spread of avian flu which could ultimately be a catalyst for many veterinarian visits for these farmers.

The legislation passed by the majority party of the Finance Committee states licensed veterinary practitioners primarily engaged in the practice of veterinary medicine, dentistry, or surgery for animals; and establishments primarily engaged in providing testing services for licensed veterinary practitioners would have their services taxed.

The estimated amount of money this would generate the state is $17.1 million in FY 2016 and $21.8 million in FY 2017. Adding insult to injury the majority party budget also proposed to cut in half the amount of money that is made available to dairy farmers from the Community Investment Act which helps with farmland preservation and land protection.

“The cut to the Community Investment Act on top of this new tax on veterinary services will be devastating to farmers in Connecticut,” added Sen. Guglielmo. “I will not support these new taxes.”