Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-1 - Agricultural production; definitions

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 1.
(a)
				Definitions. "Farmers" means only those persons occupationally engaged in
				producing food or agricultural commodities for sale or for further use in
				producing food or such commodities for sale. These terms are limited to those
				persons, partnerships, or corporations regularly engaged in the commercial
				production for sale of vegetables, fruits, crops, livestock, poultry, and other
				food or agricultural products. Only those persons, partnerships, or
				corporations whose intention it is to produce such food or commodities at a
				profit and not those persons who intend to engage in such production for
				pleasure or as a hobby qualify within this definition.
"Farming" means engaging in the commercial production of food
				  or agricultural commodities as a farmer.
"To be directly used by the farmer in the direct production
				  of food or agricultural commodities" requires that the property in question
				  must have an immediate effect on the article being produced. Property has an
				  immediate effect on the article being produced if it is an essential and
				  integral part of an integrated process which produces food or an agricultural
				  commodity.
(b) The state
				gross retail tax shall not apply to:
(1) Sales
				to farmers of animals and poultry used for breeding purposes are exempt from
				tax provided the farmer used such animals and poultry to breed animals and
				poultry to be used by the farmer in the production of food or agricultural
				commodities.
(2) Sales to farmers
				of animals and poultry to be directly used by the farmer in the direct
				production of food and agricultural commodities are exempt from tax. Domestic
				animals and birds, pets, game animals and birds, furbearing animals, fish, and
				other animals or poultry not directly used by the farmer in the direct
				production of food or agricultural commodities are subject to tax. Baby chicks,
				ducklings, geese, turkey poults, hatching eggs, pigs, hogs
[sic., ,]
lambs, sheep, livestock, calves, and cows are exempt from tax,
				provided that they are directly used by the farmer in the direct production of
				food or agricultural commodities for sale.
(3) Sales to farmers and to other persons
				occupationally engaged in the business of producing food and agricultural
				commodities for human, animal, or poultry consumption (either for sale or for
				further use in producing such food and agricultural commodities for sale) of
				animal and poultry life to be directly used by the purchaser in the direct
				production of food and agricultural commodities.
(4) Sales of animals and poultry to a farmer
				to be directly used by the farmer in the direct production of food or
				agricultural commodities (either for sale or for further use in producing such
				food or commodities for sale) for human, animal, or poultry consumption are
				exempt from tax.