Tax Rules: Final: 5703-9
5703-9-23 Personalty used or consumed in farming,
agriculture, horticulture or floriculture
For the purpose of this Rule, farming is defined as the
occupation of tilling the soil for the production of crops as
a business and shall include the raising of farm livestock,
bees, or poultry, where the purpose is to sell such
livestock, bees, or poultry, or the products thereof as a
business.
Agriculture is defined as the cultivation of the soil for the
purpose of producing vegetables and fruits and includes
gardening or horticulture, together with the raising and
feeding of cattle or stock for sale as a business.
Horticulture is defined as the production of vegetables,
vegetable plants, fruits, or nursery stock for sale as a
business and shall include the operation of commercial
vegetable greenhouses or nurseries.
Floriculture is defined as the production of flowers and
plants for sale as a business, either in the field or
greenhouse.
Persons engaged in rendering farming, agricultural,
horticultural, or floricultural services for others are
deemed to be engaged directly in farming, agriculture,
horticulture or floriculture.
Sales of articles of tangible personal property to farmers,
agriculturists, horticulturists and floriculturists, who
purchase such items for the purpose of incorporating them
into tangible personal property to be produced for sale, are
not subject to the tax.
Sales of articles to be used or consumed in farming,
agriculture, horticulture, or floriculture, directly in
producing tangible personal property for sale, are not
subject to the tax.
Sales of articles to be used or consumed in farming,
agriculture, horticulture, or floriculture directly in the
production of tangible personal property which will, in turn,
be used directly in the production of products of any of the
activities defined above, for sale, are not subject to the
tax.
Sales of articles to be incorporated, as a material or part,
into the tangible personal property described in the
preceding paragraph, are not subject to the tax.
Sales of articles to be used or consumed in the conditioning
or holding of products produced for sale, or produced for
further use in production for sale, by farming, agriculture,
horticulture or floriculture, are not subject to the tax.
The foregoing exemptions do not apply to any article which is
incorporated into real property.
The taxability or non-taxability of sales is determined by
the use of articles sold. For the sale to be exempt, it is
necessary that the articles sold be used in an exempt manner
as defined above. Implements and articles used to cultivate
or stimulate the growth of crops or flowers which are to be
sold are within the scope of the exemptions as is livestock
and poultry purchased for purposes or resale, or for the
purpose of selling the products thereof.
Sales of materials such as lumber, nails, glass and similar
items to be used in the construction or repair of buildings
shall be subject to the tax.
Effective: 1-2-62 as TX-15-10
Promulgated under: 5703.14