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Farm Bureau Concerned About Increasing Taxes On Pesticides

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Sacramento, CA — A proposal by Governor Gavin Newsom to help balance the budget is to increase the amount of extra money paid to purchase pesticides.

To address a shortfall within the California Department of Pesticide Regulation, the governor is proposing to increase the mill tax, levied on pesticides, from 21 mills to 28.6 mills over a three year period. A mill is equal to one/tenth of a cent. Combined with increases in registration and licensing fees, the Farm Bureau says it equates to a tax increase totaling $33 million.

Shannon Douglass, President of the California Farm Bureau, says, “This tax increase directly impacts farmers and ranchers who purchase crop protection materials. Raising the mill tax would also increase costs of producing food for Californians and burden families with still higher food prices at the grocery store.”

The mill tax increase would first have to be approved by the legislature before it can be signed and enacted by the governor.

In addition, the Farm Bureau reports that it is also keeping a close eye on discretionary state budget cuts proposed that could delay funding of water projects, especially for the long-talked-about Sites Reservoir, north of Sacramento.