Update: Livestock premium tax exemption passes

As part of an omnibus tax bill, the state House passed legislation last week that would allow monetary awards at livestock shows to be treated as scholarship money for tax purposes, good news for local FFA and 4-H parents and students.
Language from a bill originally introduced by Rep. Steve Kouplen, D-Beggs, was added to the bill in conference committee. It would allow awards from livestock shows – up to $600 – to be reported as a scholarship, not as taxable income.
“The young people who raise livestock put in so much hard work – and they also invest money – for these achievements,” Kouplen stated. “I think the least we can do is to acknowledge that these efforts should be rewarded just as we reward hard work and achievement in the classroom.”
Kouplen’s original bill, House Bill 1918, had similar language, but would not have included the $600 cap. Earlier this year the bill was approved by an appropriations subcommittee, but was not granted a full committee hearing.
“I worked with several of my colleagues to ensure that this measure would be carried through in some form,” he said. “It’s important to the people of my district, and it’s important to the future of our state that we preserve the tradition of farming and ranching.”
Kouplen went on to say that he thinks the bill’s passage was “a great first step” and that he’ll work to remove the cap so young people can “fully realize the tax exemptions.”