How Much Do Farmers Pay in Taxes? - AgEcon...
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Journal of Agribusiness 20,1 (Spring 2002):41S50 © 2002 Agricultural Economics Association of Georgia How Much Do Farmers Pay in Taxes? Gregory M. Perry and Clair J. Nixon A variety of federal, state, and local taxes are levied on farming operations in the United States. To date, there has been no attempt to systematically estimate what the total tax burden is on U.S. farms and how that burden varies from state to state. Based on the results of this analysis, the total farmer tax burden in 1994 was estimated at nearly $17 billion, most of which was in the form of real property tax (44%) and federal personal income tax (26%). Key Words: farms, income taxes, property taxes, tax burdens Interest in determining the annual tax burden of U.S. farms stems back over 100 years. Early on, the term “farm taxes” meant property taxes, as this was essentially the only tax levied on farms. Indeed, in their historical 1840 S1932 overview of agri- cultural economics in the United States, Taylor and Taylor (1952) note: In the earlier period of our history, when practically all income was derived from land, the capital value of property was perhaps as good a measure as any of per- sonal tax-paying ability, and the method certainly was easily applied (p. 1002). Concern about farm taxes increased in the 1890s and 1920s when farm commod- ity prices dropped and farmers found themselves in financial distress. In 1922, the Bureau of Agricultural Economics responded to these concerns by surveying farmers about the taxes they paid in 1913 S14 and 1921S22. Additional estimates of taxes paid were made every few years, eventually becoming an annual exercise that con- tinues to the present (Taylor and Taylor, 1952). The early 1900s initiated a period of significant change in how federal, state, and local governments generated revenue. For example, federal and state income taxes came into existence in 1913 after the 16th Constitutional Amendment was ratified. The federal government first levied the estate tax in 1916. West Virginia adopted the business occupation tax in 1921, the first tax based on retail sales. The need for revenue during the Great Depression encouraged a number of states (starting with Mississippi) to enact a state sales tax. States progressively moved away Gregory M. Perry is professor, Department of Agricultural and Resource Economics, Oregon State University; Clair J. Nixon is professor, Department of Accounting, Texas A&M University. The authors express appreciation to Jim Johnson and staff at RED/ERS for providing access to unpublished expenditure data reported in the Farm Costs and Returns Survey, and also to Ron Durst and staff at ERS for assistance in obtaining income tax data. This is Technical Paper No. 11894 of the Oregon Agricultural Experiment Station.
Transcript of How Much Do Farmers Pay in Taxes? - AgEcon...
Journal of Agribusiness 20,1(Spring 2002):41S50© 2002 Agricultural Economics Association of Georgia
How Much Do Farmers Pay in Taxes?
Gregory M. Perry and Clair J. Nixon
A variety of federal, state, and local taxes are levied on farming operations in theUnited States. To date, there has been no attempt to systematically estimate whatthe total tax burden is on U.S. farms and how that burden varies from state to state.Based on the results of this analysis, the total farmer tax burden in 1994 wasestimated at nearly $17 billion, most of which was in the form of real property tax(44%) and federal personal income tax (26%).
Key Words: farms, income taxes, property taxes, tax burdens
Interest in determining the annual tax burden of U.S. farms stems back over 100years. Early on, the term “farm taxes” meant property taxes, as this was essentiallythe only tax levied on farms. Indeed, in their historical 1840S1932 overview of agri-cultural economics in the United States, Taylor and Taylor (1952) note:
In the earlier period of our history, when practically all income was derived fromland, the capital value of property was perhaps as good a measure as any of per-sonal tax-paying ability, and the method certainly was easily applied (p. 1002).
Concern about farm taxes increased in the 1890s and 1920s when farm commod-ity prices dropped and farmers found themselves in financial distress. In 1922, theBureau of Agricultural Economics responded to these concerns by surveying farmersabout the taxes they paid in 1913S14 and 1921S22. Additional estimates of taxespaid were made every few years, eventually becoming an annual exercise that con-tinues to the present (Taylor and Taylor, 1952).
The early 1900s initiated a period of significant change in how federal, state, andlocal governments generated revenue. For example, federal and state income taxescame into existence in 1913 after the 16th Constitutional Amendment was ratified.The federal government first levied the estate tax in 1916. West Virginia adopted thebusiness occupation tax in 1921, the first tax based on retail sales.
The need for revenue during the Great Depression encouraged a number of states(starting with Mississippi) to enact a state sales tax. States progressively moved away
Gregory M. Perry is professor, Department of Agricultural and Resource Economics, Oregon State University; ClairJ. Nixon is professor, Department of Accounting, Texas A&M University. The authors express appreciation to JimJohnson and staff at RED/ERS for providing access to unpublished expenditure data reported in the Farm Costs andReturns Survey, and also to Ron Durst and staff at ERS for assistance in obtaining income tax data. This is TechnicalPaper No. 11894 of the Oregon Agricultural Experiment Station.
42 Spring 2002 Journal of Agribusiness
from solely a property tax basis to an income and sales tax basis. Property taxes asa percentage of total state and local tax collections fell from 74% in 1930 to 31% in1990. By 1980, sales and excise taxes were the largest single source of tax revenuefor state and local governments [U.S. Department of Commerce (USDC), 1995b].
The shift in how federal, state, and local governments generate revenue has hadan impact on the total tax burden for U.S. farms. Yet, little is known about the rela-tive size of these tax payments. Farmers want to know if they are being “fairly”treated in their state compared to farmers in neighboring states. Legislators andpolicy makers are continually adjusting tax laws to reduce tax burdens, to addressinequities that exist in current laws, or to promote certain social or economic goals.A more complete picture of the total tax burden on farms would be beneficial toaddressing issues of equity for both farmers and taxpayers.
For purposes of this analysis, farm taxes were divided into two categories: (a) thoselevied on farm inputs, and (b) those based on income. Input taxes include taxes onreal and personal property, sales and excise, and other specialty taxes. Income taxesinclude federal income and self-employment taxes as well as state income taxes,where applicable.
Calculating Total Input Taxes Paid
Most of the tax estimates reported here were calculated using the 1994 State IncomeAccounts, which contain a summary by state of farm business expenses by majorexpense category [U.S. Department of Agriculture/Economic Research Service(USDA/ERS), 1996]. These estimates, in turn, were calculated using the USDA’s1994 Farm Costs and Returns Survey (FCRS). Data on a number of important taxcategories were directly collected in the survey, including real and personal propertytaxes, vehicle registration, and (in 1992) payroll expenses. Sales, state excise, insur-ance, and utility taxes were calculated based on tax laws in each state. A summationof the major input taxes paid in each category, by state, is given in table 1.
An understanding of the various taxes and how they are assessed is useful whenconsidering their impact on farming operations. Real property taxes are levied bylocal governments on land and all improvements attached to the land. Personal prop-erty taxes are levied on capital assets not attached to the land, such as machinery,livestock, and vehicles. In virtually all states, real property taxes on land (and some-times land improvements) are based on the asset’s productive value. Althoughpersonal property taxes are generally calculated based on the asset’s market value,the procedures used by some states generate values that are substantially less thanmarket value. About 15 states levy no personal property taxes, while others limit thetax only to selected business assets. Property taxes are generally used to fund schoolsand other local services.
Registration costs are levied on vehicles driven on the road, and are used by stateand local governments either for general purposes or, in some cases, for road main-tenance and improvement. Payroll expenses include employer payments for employeesocial security, unemployment insurance, and worker’s compensation insurance.
Perry and Nixon How Much Do Farmers Pay in Taxes? 43
1 This assumption is reasonably accurate given (a) most items purchased have such a small tax that it is not worthavoiding, and (b) states take steps to ensure the tax cannot be avoided on large items.
2 See Perry, Nixon, and Stoff (1994) for a more in-depth discussion about how sales and excise taxes are leviedby states on farming operations.
Although these payments provide specialized insurance coverage and pension pro-grams, their mandatory nature caused us to report their estimates.
Sales, state excise, insurance, and utility taxes were calculated using the Com-merce Clearing House (1993 and updates) summary of state tax law. The calculationswere made assuming farm operators could not avoid paying these taxes.1 Sales taxesare levied on a variety of items used in farming, including building materials, equip-ment, repair parts, and tools.2 Because the focus of this study is on farm businesses,sales taxes on home consumption items were ignored. Further, given that a numberof states have different local sales tax rates, a range for sales taxes paid was esti-mated based on the minimum and maximum rates in these states (refer to table 1).State sales tax revenues generally fund state services, with local sales taxes beingused to supplement property taxes in funding local governments.
The major excise taxes levied by state and federal governments are imposed ongasoline, diesel fuel, tobacco products, and alcoholic beverages. Generally speaking,farm operators pay little or no tax for off-road gasoline and diesel fuel, but arerequired to pay these taxes on fuel used by on-road vehicles. In this analysis, weassumed farmers do not purchase fuel for off-road use and then use it for on-roadpurposes.
Insurance taxes are levied by state governments on insurance policies sold in thestate. Utility taxes are generally levied on the sale of electricity, natural gas, andtelephone services. For the most part, these taxes are calculated as a percentage ofgross sales, although in a few cases electricity is taxed on a per kilowatt basis. Rev-enues from these taxes go into general state revenue funds.
As expected, real property taxes on land (the major capital input in agriculture)represent the largest category of taxes levied on farm operations, generating just over$6 billion in tax revenues in 1994. Sales taxes were also significant, however, gener-ating $1S$1.3 billion in tax revenue. In addition, payroll taxes cost farmers almost$1 billion. The input taxes listed in table 1 represented 4.6% of total gross farmrevenue in 1994.
Estimating Income-Based Taxes for Farm Operators
Calculating the amount of federal income, social security, and state income taxespaid by farm operators on their farm business operations is complex. Most individualswho receive income from farming operations also receive wages, salaries, interest,dividends, rental income, or other types of business income. Consequently, the entireincome picture for a farm family must be considered when determining what pro-portion of the total tax burden can be attributed to the farming enterprise.
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Table 1. Total Income, Sales, Excise, Property, and Other Taxes Paid by State in 1994 ($ millions)
Sales Excise Vehicle Insurance Property Taxes
State Min. Max. Min. Max. Regist. & Utility Real Personal
Ala. Alaska Ariz. Ark. Calif. Colo. Conn. Del. Fla. Ga. Hawaii Idaho Ill. Ind. Iowa Kans. Ky. La. Maine Md. Mass. Mich. Minn. Miss. Mo. Mont. Nebr. Nev. N.H. N. Mex. N.J. N.Y. N.C. N. Dak. Ohio Okla. Oreg. Pa. R.I. S.C. S. Dak. Tenn. Texas Utah Vt. Va. Wash. W. Va. Wis. Wyo.
9.50.0
14.713.8
194.415.9
0.40.0
30.019.5
3.88.2
47.936.827.023.324.217.1
2.95.22.2
13.856.021.922.0
0.933.1
3.00.0
14.84.5
13.920.929.218.212.9
0.029.9
0.05.1
24.523.550.9
4.62.18.3
63.93.2
30.34.6
24.80.0
19.822.4
227.337.9
0.70.0
35.629.9
4.89.4
68.136.832.133.825.128.4
2.95.52.2
13.869.122.538.9
0.942.4
3.20.0
19.65.9
28.121.936.925.123.4
0.035.4
0.06.3
38.529.473.4
5.72.39.1
73.73.2
36.17.6
4.60.14.4
15.433.511.1
0.51.05.95.90.99.0
19.212.324.020.5
6.46.81.42.71.17.9
17.311.912.110.622.1
0.90.34.51.5
13.013.812.711.312.6
7.07.10.13.3
10.59.0
40.03.31.05.6
10.50.9
11.42.3
4.60.14.4
15.433.511.1
0.51.09.15.90.99.0
19.212.324.020.5
6.46.81.42.71.17.9
17.311.912.110.622.1
0.90.34.51.5
13.013.812.711.312.6
7.37.10.13.3
10.59.0
40.03.31.05.6
10.50.9
11.42.3
6.60.12.93.2
34.112.7
0.80.54.95.30.7
10.713.0
5.017.911.0
2.40.61.22.31.16.06.02.49.76.35.42.30.45.31.24.54.36.8
11.713.0
2.57.40.12.04.14.6
16.82.80.92.9
19.61.36.13.2
1.30.00.91.9
10.82.10.60.42.22.60.63.5
11.72.85.92.02.51.60.40.70.43.02.91.82.82.22.40.30.21.11.04.03.43.45.23.01.85.70.10.53.31.67.30.70.40.84.60.54.10.3
13.81.2
53.961.1
439.995.512.9
1.4157.8
64.653.142.3
535.9164.3403.4154.3
52.628.318.229.419.5
237.3280.6
35.791.776.2
589.54.4
12.613.043.6
186.272.1
127.4201.8
62.990.3
159.33.8
24.4193.6
63.0378.1
13.428.676.098.4
6.0414.5
19.8
8.20.18.0
11.783.311.2
8.80.0
22.929.7
0.014.2
0.053.7
0.038.514.3
3.012.018.5
6.721.323.4
9.333.129.222.9
2.42.84.36.70.0
19.410.310.122.3
8.90.01.55.70.0
11.439.8
6.212.313.524.6
2.755.5
5.9
TOTAL 1,013.0 1,320.1 451.1 454.6 296.8 123.3 6,007.7 750.2
Perry and Nixon How Much Do Farmers Pay in Taxes? 45
Table 1. Extended
Federal Income
SocialSecurity
State Income
Total Taxes by Category Taxes as% of Gross
Farm Income State Payroll Input Income All
Ala. Alaska Ariz. Ark. Calif. Colo. Conn. Del. Fla. Ga. Hawaii Idaho Ill. Ind. Iowa Kans. Ky. La. Maine Md. Mass. Mich. Minn. Miss. Mo. Mont. Nebr. Nev. N.H. N. Mex. N.J. N.Y. N.C. N. Dak. Ohio Okla. Oreg. Pa. R.I. S.C. S. Dak. Tenn. Texas Utah Vt. Va. Wash. W. Va. Wis. Wyo.
8.30.3
13.311.1
313.013.4
5.01.6
46.410.814.515.815.210.713.311.9
7.67.24.06.15.0
25.220.8
8.39.96.9
12.52.01.47.87.5
21.513.5
4.913.2
6.932.822.7
0.64.84.85.2
34.94.62.56.4
54.21.0
28.43.7
119.31.1
37.9163.9523.2
86.516.113.5
261.5202.4
5.056.3
213.0101.5222.6110.0135.0
60.29.0
33.013.060.5
124.964.4
145.962.0
123.410.3
4.141.928.673.5
252.941.8
130.7157.2
74.1108.2
2.948.071.786.5
543.525.912.178.7
143.311.3
107.246.0
13.00.19.6
29.858.515.9
2.40.8
30.823.5
0.512.376.435.163.654.425.810.9
1.21.92.0
24.944.911.543.5
9.764.6
1.50.65.71.84.0
55.626.649.615.4
7.35.40.45.2
36.216.573.2
4.61.5
15.815.1
1.940.8
2.5
23.30.07.1
44.1137.7
18.83.14.40.0
51.91.9
17.235.125.968.626.539.4
8.72.78.44.4
15.542.212.030.816.329.8
0.00.19.75.2
25.582.9
5.430.041.831.520.2
0.812.7
0.00.80.07.73.3
20.00.03.1
37.50.0
52.21.8
98.1118.3
1,109.0161.9
29.04.9
270.2138.4
73.6103.7642.8285.7491.5261.5110.0
64.540.065.036.1
314.6407.0
91.3181.2132.3687.8
15.317.751.066.0
243.0147.5194.7271.5133.5143.3232.2
6.145.8
240.8118.3567.8
35.647.7
113.5275.7
15.5550.4
39.9
155.51.2
54.6237.8719.4121.2
21.718.7
292.3277.8
7.486.0
324.5162.6354.8190.9200.1
79.813.043.419.4
101.0212.1
87.9220.3
87.9217.9
11.84.8
57.335.6
103.0391.4
73.9210.3214.4113.0133.8
4.165.8
108.0103.8616.6
38.117.0
114.4158.4
16.3185.5
48.5
207.73.0
152.7356.1
1,828.4283.0
50.723.6
562.5416.3
81.1189.7967.4448.3846.3452.4310.1144.4
53.0108.4
55.5415.6619.1179.2401.5220.2905.7
27.122.5
108.3101.6346.0539.0268.6481.8347.9256.3366.0
10.2111.7348.7222.1
1,184.473.764.7
227.9434.1
31.8735.8
88.4
5.7%18.3%
7.5%5.9%8.4%6.2%9.7%3.2%9.0%7.4%
15.1%5.6%
10.0%7.8%6.5%5.0%8.0%5.8%9.5%6.9%
10.5%10.8%
6.9%4.9%7.5%9.1%9.1%8.0%
11.6%6.1%
11.3%11.2%
7.0%6.8%8.9%7.2%7.1%8.8%
11.4%6.9%8.2%8.2%7.7%7.4%
12.0%9.0%7.9%6.3%
11.4%9.9%
TOTAL 903.2 5,065.7 1,055.2 1,014.0 9,545.3 7,134.9 16,680.2 8.1%
46 Spring 2002 Journal of Agribusiness
3 This number seems very reasonable given (a) the 1992 Census of Agriculture (USDC, 1995a) reported 187,000partnerships, 65,000 family corporations, and 12,000 estates or trusts, and (b) one would expect a substantial propor-tion of partnerships or S corporations also have sole proprietor income, and therefore file a Schedule F.
4 The IRS statisticians felt it was inappropriate to prorate losses.
Income tax data are collected by the U.S. Internal Revenue Service (IRS) and dis-tributed to the revenue offices of each state. Unfortunately, the states do not reportdetailed income tax information to the IRS, nor do they generally have the capabilityto estimate taxes paid by farmers in their state.
Another complicating dimension when estimating income taxes paid by farm oper-ators is the fact that farm income can appear on several different federal tax forms.For example, Schedule F is used solely by farm operators (usually sole proprietors)to report most types of farm income and expenses. However, partnership, SubchapterS Corporate, and farm rental income not reported on Schedule F is summarized onform K-1 and reported on Schedule E, where it is commingled with partnership, cor-porate, and rental income from nonfarm sources. Sales of cull breeding stock, land,and other assets are treated as capital gains or losses and reported on Schedule D.Further, depreciation recapture is summarized on Schedule 4797.
The IRS draws a sample of returns filed each year for use in special research pro-jects involving tax issues. The sample includes total values from all of the forms filedwith each tax return, as well as limited additional data from each form. Although thetotal sample size drawn is several hundred thousand, only about 5,000 returns includea Schedule F. Given the relatively small sample size, the Statistics of Income Divisionwithin the IRS was unable to summarize the returns at the state level, but was ableto provide summaries by USDA farm production regions for the 1994 study year.
The first step in using the IRS sample data set was to isolate all of the returnsreporting some farm-related income. For this purpose, an entry on line 1 of ScheduleSE (Self-Employment tax) became a key piece of information to identify tax returnsthat reported farm income. Line 1 summarizes farm profit for each self-employedperson from Schedule F as well as income from Schedule K-1. Schedule K-1 is usedto report an individual taxpayer’s share of partnership, Subchapter S corporation,and trusts and estates income or loss. Based on these criteria, the IRS estimated that2.344 million individuals received some form of farm income in 1994, of which2.232 million filed a Schedule F and the remaining 112,000 reported only K-1 farmincome.3
Once the farm-related tax returns were identified, the IRS prorated total taxes paidfor each return based on the amount of income reported on Schedule E and ScheduleF. If a loss was reported, taxes paid were set at zero.4 Social security (self-employ-ment) taxes were prorated based on the proportion of farm income to total incomereported on Schedule SE. The income and social security taxes were calculatednationally and for each USDA production region. Capital gains taxes were also pro-rated based on the proportion of capital gains income to adjusted gross income.
As previously noted, Schedule E summarizes income from a number of farm andnonfarm sources. A major portion of Schedule E is devoted to rental real estate androyalties generated from nonfarm sources. By deducting this income from total
Perry and Nixon How Much Do Farmers Pay in Taxes? 47
5 Because of the method used to identify the study sample, nonfarm partnerships, S corporations, and trusts andestates would only be included in Schedule E totals if the individual also filed a Schedule F.
Schedule E income, farm rental, partnership, S corporation, and estate and trust in-come was isolated. Although it was not possible to further separate farm and nonfarmpartnership, S corporation, and estate and trust income, it seems likely most of thisincome was farm related.5
Schedule D (capital gains) income is also an important source of farm income be-cause it includes sales of farm real estate and raised breeding livestock. In addition,Schedule D includes capital gains from the sales of stocks, bonds, and nonfarm realestate. Again, there was no way to separate the farm-related income from incomegenerated off the farm. According to 1994 USDA estimates, only about 5% of farmbusiness assets were in cash, savings, stocks, bonds, and similar assets, comparedto 75% in real estate and 7% in livestock and poultry (USDA/ERS, 1996). Conse-quently, excluding the impact of capital gains income on total taxes paid by farmerswould be inappropriate. Using this approach, taxes generated from the differentforms were as follows: Schedule F = $917 million, Schedule E = $2,018 million, andSchedule D = $2,131 million.
Total taxes paid in each region were distributed to each state in the region usingstate calculations for personal income, cash farm income, and federal and state in-come taxes. The results are reported in table 1. Total federal income taxes were $5.07billion. The taxes tended to be higher in states with no income tax, as well as stateslocated in the southeastern United States. Social security taxes were $1.055 billion,a much smaller amount than the federal income tax obligation. These results areconsistent with other studies suggesting that the relatively large portion of unearnedincome generated by farms results in a disproportionately low social security taxburden (Perry, Nixon, and Stoff, 1994). As seen from table 1, state income taxes wereestimated at $1.014 billion, and total income-based taxes (i.e., federal, state, and socialsecurity) were $7.135 billion.
The pie chart in figure 1 illustrates the breakdown between income and input taxespaid by farmers in 1994, by major category. Property taxes represented the largestproportion (44%) of the total farm tax burden, with federal income taxes represent-ing another 26%. The remaining tax burden was nearly equally divided among socialsecurity, state income, sales, payroll, and other taxes.
The results reported in table 1 identify Alaska as the state with the highest taxesfor agriculture, with 18.3% of total gross income devoted to taxes. Other high-taxstates are Hawaii, Vermont, New Hampshire, Rhode Island, and Wisconsin. All ofthese states assess per acre property tax values which are well above the nationalaverage (USDA/ERS, 1996). In New Hampshire, for example, per acre propertytaxes are high because the state has no sales tax and a limited income tax, makingstate and local government largely dependent on property taxes to fund services. Inthe other states, urban pressures have pushed farm property values to high levels.Although these states do not tax property at market value, they tend to have higherthan average assessed values on land and improvements.
48 Spring 2002 Journal of Agribusiness
From table 1, the state with the lowest overall tax burden for farms is Delaware,with only 3.2% of gross farm income devoted to taxes. Delaware has no sales taxand exempts much of its farm land from any property tax. Other low-tax states areMississippi, Kansas, Idaho, and Alabama. Most of the low-tax states are at or nearthe bottom nationally in per acre property taxes paid.
In considering these results, we do ask the reader to keep in mind the followingcaveats. Given estimates of wages paid by farm operators, payroll taxes should bemore than the amounts reported in table 1. This discrepancy could be caused byfarmers (a) under-reporting these payments in the Farm Costs and Returns Survey,(b) failing to purchase worker’s compensation insurance or unemployment insur-ance, or (c) under-reporting wage income for social security taxes.
Although 15 states do not levy personal property taxes on farm assets, all statesare shown in table 1 to have some personal property taxes paid by farmers. Thisresult may have occurred because farmers filling out the cost of production surveyswere unsure where certain taxes should be reported. In addition, some farms havefarm-related facilities designed to process or otherwise add value to their farm pro-ducts, and these facilities are subject to the personal property tax.
Figure 1. Farm taxes paid in 1994, by type of tax
Perry and Nixon How Much Do Farmers Pay in Taxes? 49
Concluding Comments
The analysis conducted here provides insights into the relative importance of differ-ent taxes in determining farm operator tax burden on a state-by-state basis. Mostresearch into farm operator tax burdens has been focused at the federal level. Thisstudy incorporates the federal income and employment tax results with state incomeand input tax values. Our analysis determined the following:
P Real estate taxes are the single largest tax paid by farm operators, representingapproximately 44% of their entire input tax burden.
P Federal income taxes are also a significant tax, representing about one-fourth(26%) of the total tax burden.
P Federal social security, state income, and sales taxes likewise are a significantcost to farmers, representing over $1.5 billion annually.
Interestingly, most of the federal income taxes estimated here for farmers weregenerated from IRS Schedules E and D. While there will be some nonfarm taxableincome included in the results, it will likely be offset by income taxes generated byC corporations that were not included in the estimates.
Although the results are based on only one year of data (1994), the findings doprovide a snapshot of the relative farm operator tax burdens between states. Further,there have been changes in the federal and state tax laws since 1994. Still, the natureof these changes should not significantly shift the tax burden between states. Evenchanges in agricultural income since 1994 should not alter the basic tax burdenrelationships identified in table 1.
References
Ahearn, M. C., J. E. Perry, and H. S. El-Osta. (1993, January). “The economic well-beingof farm operator households, 1988S90. Agr. Econ. Report No. 666, U.S. Departmentof Agriculture/Economic Research Service, Washington, DC.
Commerce Clearing House, Inc. (1993, with updates). Multistate Sales Tax Guide, Vols.1S9. Chicago: Commerce Clearing House, Inc.
Perry, G. M., C. J. Nixon, and M. C. Stoff. (1994). “Sales and excise taxes: Differentialstate subsidies to production agriculture.” Agricultural Finance Review 54, 80S93.
Taylor, H. C., and A. D. Taylor. (1952). The Story of Agricultural Economics in theUnited States, 1840S1932. Ames, IA: Iowa State College Press.
U.S. Department of Agriculture. (1994). “1994 Farm Costs and Returns Survey” (FCRS).Annual farm survey, jointly conducted by Economic Research Service and NationalAgricultural Statistics Service, USDA, Washington, DC.
U.S. Department of Agriculture, Economic Research Service. (1996, August). “FarmBusiness Economics Report, 1994.” ECI 1995, USDA/ERS, Rural Economy Division,Washington, DC.
50 Spring 2002 Journal of Agribusiness
U.S. Department of Agriculture, National Agricultural Statistics Service. (1996). Agricul-tural Statistics, 1995S96. USDA/NASS, Washington, DC.
U.S. Department of Commerce, Bureau of the Census. (1995a, January). 1992 Censusof Agriculture. Data on two compact disks, CD92-AG-1B and 1C. Bureau of theCensus, Economic and Statistics Administration, Washington, DC.
———. (1995b). Statistical Abstract of the United States, 1995. USDC/Bureau of theCensus. Washington, DC: Government Printing Office.
U.S. Internal Revenue Service, Statistics of Income Division. (1994). Unpublished data-base: 1994 tax summaries by USDA farm production region. IRS, Washington, DC.
