agriculture exemption from highway use tax

At the close of the 2021 session, the Connecticut General Assembly approved Governor Lamont’s proposal to impose a highway use tax on trucks, now known as HUT. At the outset of this proposal, the Connecticut Farm Bureau (CFBA) argued against its implementation and offered language to exempt agriculture-related vehicles.

Fast forward to today, Connecticut farmers, who are at the very beginning of the food supply chain, have been hit by first input costs not experienced by the agricultural industry in decades. Fertilizer accounts for about 15% of farm production costs and its price have increased 100 – 300% over the calendar year. Seed, hay, and small grain seed have increased by 32%. Crop production supplies like poly for hoop houses and plastic containers utilized by the greenhouse and nursery industries have increased up to 50%. Diesel fuel, used in farm tractors, machinery and transportation has increased 62% in the last twelve months. Supply chain disruptions and labor shortages have further affected the start of the growing season. This is all happening while the state’s fiscal situation has completely changed for the better.

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