Tax Rules: Final: 5703-3
5703-3-30 - Personal property in
inventory of a merchant manufactured for agricultural use not
subject to personal property tax
Pursuant to division (A) of section 5701.08 of the Revised
Code as amended by Am. Sub. H.B. 291 of the 115th General
Assembly, effective July 1, 1983, new or used machinery and
equipment and accessories therefor which are designed and
built for agricultural use and owned by a merchant, as
defined in section 5711.15 of the Revised Code, are not
considered "used in business" and, therefore, not subject to
personal property tax under the provisions of division (B)(1)
of section 5709.01 of the Revised Code.
To qualify for this exception such property must meet all of
the following conditions:
(A) It must be owned by a merchant. Property consigned to a
merchant does not qualify. Also, a manufacturer is not a
merchant with regard to property he manufactures.
(B) It must be machinery and equipment, or accessories
therefor. Tools and implements do not qualify. Qualifying
accessories are those that are usable only when attached to
or coupled with qualifying machinery and equipment.
(C) It must be designed and built for agricultural use.
Typical qualifying items include balers, combines,
cultivators, driers, feed grinders, harrows, rotary hoes,
mills, pickers, planters, plows, shellers, and silo fillers.
Also qualifying are farm-type loaders, spreaders, tillers,
tractors, and wagons. However, neither home lawn and
garden-type items, nor general-use items such as bulldozers,
graders, trenchers, and trucks, shall be considered as
designed and built for agricultural use.
A merchant shall be required to disclose in his personal
property tax return all property held for sale, segregating
property qualifying for this exception from non-qualifying
property, and list the monthly-ending values of all
non-qualifying property in "Schedule 3A."
Promulgated under: 5703.14
Amplifies: 5703.14, 5701.08, 5709.01