California Grange Testifies In Support Of Alpaca Ranchers
California breeder Paige Romine
of Retiredice Alpaca’s with three year old Kayman. Alpacas are
good natured and produce a
fiber similar to cashmere.
High resolution photo download
SACRAMENTO, CALIFORNIA, May 16, 2007 -- Sheep and goats are exempt, why aren’t alpacas?
“We did not realize that in choosing alpacas we would be subject to the application of Sales and Use Tax. That is not the case with sheep and goats,” testified Bonnie Potter, alpaca rancher and Vice President of the California Alpaca Breeders Association representing 159 alpaca ranchers in California.
“The current Sales and Use Tax situation is hampering our ability to continue to grow as an agricultural industry and, in fact, it is driving alpaca farmers out of the State,” Potter told the Assembly Revenue and Taxation Committee hearing testimony on AB 1050, a bill designed to correct this inequity.
Introduced in February by Assemblyman Doug LaMalfa, 2nd District, this bill will extend the existing sales tax exemptions on food-producing animals to fiber-producing animals.
“We’re really not breaking new ground here,” said Michael Greene, Legislative Director for the California State Grange. “Food and fiber animals are treated the same under many sections of California codes, including California Department of Food and Agriculture and in other sections of the Revenue & Taxation code.” Greene gave testimony in support of the measure by the California State Grange.
In introducing his bill, LaMalfa explained that current California Revenue and Taxation Code allows a Sales and Use Tax exemption on revenue from animals raised for food production. However, the Food and Agricultural Code defines “livestock” as animals that produce food and/or fiber. AB 1050 will include fiber producing animals under the existing sales tax exemption.
“By allowing this exemption, California can help foster the growing market in the state for fiber animals and help protect small family farms,” stated LaMalfa.
Native to South America, alpacas are smaller members of the camel family, growing to about 36’ tall at the shoulder and weighing an average of 130 – 200 lbs. First brought to California in 1983, there are approximately 50,000 alpacas now ranched in the United States.
An alpaca’s coat is shorn once a year, producing fiber that is typically spun into yarn similar to cashmere but warmer, lighter, stronger and softer than sheep’s wool. Alpacas produce approximately 5 lbs. each of fiber per year in 22 natural colors. For more information on alpacas in California, go to http://www.calpaca.org/index.htm.
Since 1873 the California State Grange has championed the interests of farmers, ranchers, and rural Americans. The Grange stresses community service, and its Youth programs are open to all, urban and suburban alike. There are over 185 chapters across the state.. For more information contact the California State Grange at (916) 454-5805.