CHANGES COMING TO LIVESTOCK CONFINEMENT
I just read that California Proposition 12, the Farm Animal Confinement Initiative, was approved by 59% of their voters. At first I thought, ‘no big deal, producers will just move out of the state.’ However upon further reading, I discovered that California will ban the sale of calves and pigs raised in states that do not meet their standards. So what happens in California will likely happen in Iowa and Nebraska.
Proposition 12 of 2018 (unlike Proposition 2) prohibits the confinement of calves raised for veal, breeding pigs, and egg-laying hens in areas below a specific number of square feet, rather than restrictions based on animal behavior and movement. Proposition 12 also bans the sale of veal from calves, uncooked pork from breeding pigs, and shelled and liquid eggs from hens when the animals are confined to areas below mini- mum square-feet requirements.
Starting in 2020, Proposition 12 is set to ban the confinement of calves (young domestic cows) in areas with less than 43 square feet of usable floor space per calf, and egg-laying hens (chickens, turkeys, ducks, geese, and guinea fowl) in areas with less than 1 square foot of usable floor space per hen.
Beginning in 2022, Proposition 12 is set to ban the confinement of breeding pigs and their immediate offspring in areas with less than 24 square feet of usable floor space per pig, and egg-laying hens in areas other than indoor or outdoor cage-free housing systems based on the United Egg Producers’ 2017 cage- free guidelines, which define cage-free housing as areas that provide 1.0 to 1.5 square feet of usable floor space per hen and allow hens to move around inside the area.
What does this mean for Iowa and Nebraska? It means the construction of more confinement buildings to provide additional living space for the same number of animals. When talking with dealers we often won- dered how farmers could continue erecting new confinement buildings at such a rapid pace. Now we know what’s driving it.
iowa SALES TAX spotlight
Q: A:
How do I determine which sales tax to charge for an out-of-state customer? If the customer picks up the item at your location, Iowa law applies.
IF YOU SHIP THE ITEM, it is the customer’s responsibility to pay use tax in the state in which they reside (unless you exceed their state’s sales limit – Wayfair decision).
IF YOU DELIVER THE ITEM, you may create nexus in that state and be required to collect that state’s sales tax (check on that state’s law). If you don’t create nexus, the customer is responsible to pay use tax in the state in which they reside.
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