This archived Information Release has been superseded by a
later release. It is archived here for historical/reference
purposes ONLY. For the most current Information Releases,
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Releases" index.
ST 2002-02 - Portable Grain Bins, Field Tile, Livestock
Structures, Horticulture Structures
This Information Release rescinds the previous Information
Release dated December 1985. It adds information concerning
livestock and horticulture structures and provides statements
and instructions for completing exemption certificates.
Portable Grain Bins
Ohio Revised Code, (R.C.) 5739.01(B)(5) removes from the
classification of real property and excludes from
construction contracts the sale and erection or installation
of portable grain bins. By holding that the sale and erection
or installation of portable grain bins is never a
construction contract the transaction involving portable
grain bins becomes a retail sale.The definition of a
"Portable grain bin" is given at R.C. 5739.01(B)(5)(b) as: "a
structure that is used or to be used by a person engaged in
farming or agriculture to shelter the person’s grain and that
is designed to be disassembled without significant damage to
its component parts." The sale and installation of such bins
are deemed to be a sale and are exempt when purchased by a
qualified person as described above.
A farmer or other person engaged in agriculture as a business
or a contractor employed by either to assemble the portable
grain bin may purchase it without payment of the tax by
presenting a blanket or unit exemption certificate citing
R.C. 5739.02(B)(31) "Sales and erection or installation of
portable grain bins, as defined in division (B)(5)(b) of
section 5739.01 of the Revised Code."
Field Tile
Ohio Revised Code (R.C.) 5739.01(B)(5) excludes the sale and
installation of agricultural land tile from construction
contracts. Letter (a) of that section defines what
is included and excluded from the tax.
"Agricultural land tile" means fired clay or concrete
tile, or flexible or rigid perforated plastic pipe or
tubing, incorporated or to be incorporated into a
subsurface drainage system appurtenant to land used
or to be used directly in production by farming,
agriculture, horticulture, or floriculture. The term
does not include such materials when they are or are
to be incorporated into a drainage system appurtenant
to a building or structure even if the building is
used or to be used in such production.
The exception also applies when the land in which it is to be
placed is land leased to others who use it for agricultural
purposes and custom farming. A farmer or person engaged in
agriculture or a contractor employed by either, when
purchasing this tile, may cite R.C. 5739.02(B)(30) "Sales and
installation of agricultural land tile, as defined in
division (B)(5)(a) of the Revised Code" on an exemption
certificate. A contractor doing such work may use this
exemption only for the materials placed in the ground- not
for any tools, supplies, equipment, or services to accomplish
the work.
Livestock and Horticulture Structures
House Bill 632, effective July 22, 1994, gave definition in
the Ohio Revised Code (R.C.) to various terms used in
agriculture. A separate statutory definition is given for
"Livestock", "Livestock structure", "Horticulture" and
"Horticulture structure". R. C. 5739.01 reads at:
(OO) "Livestock" means farm animals commonly raised for
food or food production, and includes but is not limited
to cattle, sheep, goats, swine, and poultry. "Livestock"
does not include invertebrates, fish, amphibians,
reptiles, horses, domestic pets, animals for use in
laboratories or for exhibition, or other animals not
commonly raised for food or food production.(PP)
"Livestock structure" means a building or structure used
exclusively for the housing, raising, feeding, or
sheltering of livestock, and includes feed storage or
handling structures and structures for livestock
handling."(QQ) "Horticulture" means the growing,
cultivation, and production of flowers, fruits, herbs,
vegetables, sod, mushrooms, and nursery stock. As used in
this division, "nursery stock" has the same meaning as in
section 927.51 of the Revised Code.(RR) "Horticulture
structure" means a building or structure used exclusively
for the commercial growing, raising, or overwintering of
horticultural products, and includes the area used for
stocking, storing, and packing horticultural products
when done in conjunction with the production of those
products.
A person engaged in the business of horticulture or of
producing livestock may purchase material to be incorporated
into a horticulture or livestock structure by presenting to a
supplier an exemption certificate citing R.C. 5739.02(B)(37)
"Sales to a person engaged in the business of horticulture or
producing livestock of materials to be incorporated into a
horticulture structure or livestock structure." A
construction contractor would cite on an exemption
certificate to be given to its supplier R.C. 5739.02(B)(13)
"building and construction materials sold to a construction
contractor for incorporation into a horticulture structure or
livestock structure for a person engaged in the business of
horticulture or producing livestock." For the contractor
these exclusions from the tax do not apply to any tools,
construction equipment, fuels, supplies or services used in
the construction of the livestock structure.
If you have any questions regarding this matter, you should
call us at 1-888-405-4039.