Processes after the character of the agricultural goods has been changed from its raw or natural state. Services performed on agricultural goods belonging to others. Processes in connection with commercial canning or commercial freezing or in connection with any agricultural goods after its delivery to a terminal market for distribution for consumption. Processes in connection with marketing agricultural goods at retail. This includes all activities necessary to market the goods to the final consumer but does not include the farm activities defined in farm activity examples 1 and 2 above.
Primary activity is determined by comparing the tax base attributable to farm and non-farm activity.
SBT is computed on the farm and non-farm activity. If the tax base attributable to the farm activity is greater than the tax base attributable to non-farm activity, then the taxpayer's primary activity is farming. SBT is computed only on the non-farm activity. A taxpayer must allocate farm and non-farm activities in accordance with good accounting procedures. The Department will audit accounting procedures to determine if the tax base properly reflects the taxable non-farm activity.