New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 19 - SALES OF TANGIBLE PERSONAL PROPERTY AND SERVICES USED ON FARMS › Section 18:24-19.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and phrases, as used in this subchapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise:
"Agricultural or horticultural commodities" means tangible
				  personal property produced through the raising of plants or animals useful to
				  people, with certain categories of exceptions noted below:
1. Examples of agricultural or horticultural commodities include,
				  but are not limited to:
i. Vegetables;
ii. Fruits, nuts, and berries;
iii. Poultry and poultry products (for example, chickens, ducks,
				  eggs);
iv. Game animals (for example, rabbits, quail);
v. Dairy animals and milk (for example, cows, goats);
vi. Grain (for example, corn, oats, wheat);
vii. Trees (for example, shade trees, Christmas trees) and forest
				  products (for example, timber);
viii. Honey and other apiary products;
ix. Fur-bearing animals and their skins and fur (for example,
				  sheep, minks);
x. Livestock and their meat (for example, cattle, pigs,
				  sheep);
xi. Horses;
xii. Products of aquaculture (for example, tuna, oysters,
				  waterlilies);
xiii. Sod;
xiv. Forage and fee crops (for example, soybeans, feed corn);
				  and
xv. Ornamental plants (for example, flowers, yews).
2. Examples of tangible personal property not deemed to be
				  agricultural or horticultural commodities include, but are not limited to:
i. Dogs and cats;
ii. Microscopic organisms raised in a laboratory (for example,
				  penicillin); and
iii. Secondary commodities produced from agricultural or
				  horticultural commodities (for example, jellies, ice cream, pies, wreaths, woolen
				  fabrics, finished lumber).
"Aquaculture" means the propagation, raising, and harvesting for
				  sale of aquatic organisms, in controlled or selected environments in which the
				  farmer must actively intervene in the rearing process in order to effect, improve,
				  or increase production for the purpose of sale.
"Automobiles" means motor vehicles designed to be used on public
				  roadways and required to be registered as motor vehicles, other than vehicles that
				  qualify for exemption pursuant to
				  54:32B-8.4 3(a)(1), (2), or (3). (See
				  18:24-7.18 )
"Conservation services" means services performed in order to
				  conserve soil, water, soil nutrients, or other natural resources useful in the
				  production of agricultural or horticultural commodities.
1. Conservation services are exempt only when used directly and
				  primarily in the production and handling and preservation of agricultural or
				  horticultural commodities for sale.
2. Examples of conservation services include, but are not limited
				  to:
i. Aerial sowing of fall cover crop in a field of growing summer
				  crops for purposes of soil nutrient management; and
ii. Applying mulch to growing crops during a drought to prevent
				  moisture loss.
"Dairy farming" means the business of breeding, feeding, and
				  raising of cattle and other milk-producing animals, and the production of feed for
				  them by the owner of such animals, but does not include operations such as the
				  making of butter, cheese, or ice cream.
"Energy" means natural gas or electricity as defined in
				  54:32B-2(gg).
"Farm animals" means animals that fall within the definition of
				  agricultural commodities and animals that perform work used directly and primarily
				  in production and handling and preservation of agricultural or horticultural
				  commodities for sale.
1. Examples of farm animals include, but are not limited to:
i. Cows raised for their milk for sale;
ii. Pigs raised for their meat for sale;
iii. Horses bred and raised for sale;
iv. Draught animals used for productive farm work; and
v. Herding dogs used by a sheep farmer.
2. Examples of animals not deemed to be farm animals include, but
				  are not limited to:
i. Farmer's pet dogs, hunting dogs, and watch dogs;
ii. Horses being boarded and trained for customers; and
iii. Animals not raised for sale, which are used on the premises
				  where they are maintained for purposes other than farm work (for example, trout in a
				  stream stocked for fishermen, animals in a petting zoo, horses in a riding academy).
"Farmer" means a person who owns, operates, or manages a farming
				  enterprise for gain or profit.
"Farming enterprise" means a business or part of a business
				  which, using land and improvements to the land, is engaged primarily in producing
				  agricultural or horticultural commodities for sale.
1. Examples of farming enterprises include, but are not limited
				  to:
i. A fruit orchard that raises apples, pears, and cherries for
				  sale to the public;
ii. A tree nursery that grows trees for sale to contractors and
				  property owners;
iii. A game farm that raises pheasants and other game animals for
				  sale to butchers, supermarkets, and sporting clubs;
iv. A fish hatchery that raises fish for sale to restaurants,
				  food stores, and fish processors;
v. A cranberry facility that grows cranberries for sale to
				  distributors and food processors;
vi. A greenhouse that grows flowering plants for sale to retail
				  stores;
vii. A sod farm that grows sod for sale to landscapers;
viii. A poultry farm that raises chickens for their meat and eggs
				  for sale;
ix. A horse farm that breeds horses for sale to horse dealers and
				  to the public;
x. A dairy farm that raises cows in order to sell their
				  milk;
xi. A grain farm that produces crops for either human consumption
				  or livestock forage; and
xii. A vegetable farm.
2. Examples of businesses not deemed to be farming enterprises
				  include, but are not limited to:
i. A horse boarding business;
ii. A horse training business;
iii. A botanical garden primarily engaged in displaying
				  plants;
iv. A hunting game preserve;
v. A lake that is stocked with trout for sporting and
				  recreational use;
vi. Farmers' markets, produce stores, dairy product stores, and
				  florist shops;
vii. A kennel that raises dogs for sale; and
viii. Rural property on which the owner may grow or raise horses,
				  barnyard animals, flowers, vegetables, and fruits primarily for the owner's own use,
				  rather than for sale.
"Handling and preservation" means the care and maintenance of
				  farm animals and of agricultural or horticultural commodities for sale during
				  production and up to the point when the commodity reaches a marketable state, and
				  the prevention of spoilage or deterioration of agricultural or horticultural
				  commodities for sale during and after production until they reach a marketable
				  state.
"Production services" means services purchased by a farmer that
				  are part of the process of planting, breeding, propagating, feeding, fertilizing,
				  raising, or harvesting agricultural or horticultural commodities on that farmer's
				  farming enterprise for the purpose of selling those commodities.
1. Examples of production services include, but are not limited
				  to:
i. Plowing a field in preparation for planting;
ii. Spraying pesticide on a sod field;
iii. Shoeing horses used for breeding purposes;
iv. Shearing sheep raised for their wool; and
v. Picking and packing berries grown for sale.
2. Examples of services not deemed to be production services
				  include, but are not limited to:
i. Cleaning a retail store facility operated by a farmer;
ii. Repairing farm production equipment;
iii. Grooming pet horses;
iv. Making repairs on farm workers' housing; and
v. Storing farm equipment.