ST 2002-02 - Portable Grain Bins, Field Tile, Livestock
Structures, Horticulture Structures - Issued April 2002;
Revised May 2007
This information release updates the statutory reference for
the exemption for the purchase of materials to be
incorporated into a horticulture or livestock structure by a
person engaged in the business of horticulture or of
producing livestock, and makes certain stylistic changes.
Portable Grain Bins
Pursuant to Ohio Revised Code (R.C.) 5739.01(B)(5) the sale
and erection or installation of portable grain bins are not
construction contracts. Portable grain bins are not
classified as real property.
Since the sale and erection or installation of portable grain
bins is never a construction contract, the transaction
involving portable grain bins is a retail sale. "Portable
grain bin" is defined in 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.
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 certificate of exemption citing R.C.
5739.02(B)(31). This exemption provides that the "sales and
erection or installation of portable grain bins, as defined
in division (B)(5)(b) of section 5739.01 of the Revised Code”
are not subject to tax.
R.C. 5739.01(B)(5) provides that the sale and installation of
agricultural land tile is not a construction contract.
Division (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 or structure is used or to be used in
This provision also applies when the agricultural land tile
is to be placed in land leased to others who use the land 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). This
provision provides that the "Sales and installation of
agricultural land tile, as defined in division (B)(5)(a) of
section 5739.01 of the Revised Code" are not taxable. The
person claiming the exemption must provide a certificate of
exemption to its vendor when claiming this exemption. 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
R.C. 5739.01 defines that:
(OO) "Livestock" means farm animals commonly raised for food, food production, or other agricultural purposes, including, but not limited to, cattle, sheep, goats, swine, poultry, and captive deer. "Livestock" does not include invertebrates, amphibians, reptiles, 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 waste
(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
A person engaged in the business of horticulture or of
producing livestock may purchase materials to be incorporated
into a horticulture or livestock structure by presenting to a
supplier a certificate of exemption citing R.C.
5739.02(B)(36). This provision provides an exemption for
"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 may claim an exemption under R.C.
5739.02(B)(13) for "building and construction materials ***
for incorporation into a horticulture structure or livestock
structure for a person engaged in the business of
horticulture or producing livestock." The contractor must
provide its supplier with a certificate of exemption. This
exemption does not apply to any tools, construction
equipment, fuels, supplies or services used in the
construction of the livestock structure or horticulture
If you have any questions regarding this information release,
please contact Taxpayer Services at 1-888-405-4039, or e-mail
us through our Web site:
OHIO RELAY SERVICES FOR THE
HEARING AND SPEECH IMPAIRED