Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 70 - Sales and Use Tax › Part 50 - Commercial Farming and Related Items (280-RICR-20-70-50) › Section 280-RICR-20-70-50.5 - Definitions

Current through June 14, 2024
A. "Agricultural products for human
				 consumption" means livestock and poultry of the kinds of products of which
				 ordinarily constitute food for human consumption and of livestock of the kind
				 the products of which ordinarily constitute fibers for human use
B. "Commercial farming" means the keeping or
				 boarding of five (5) or more horses or the production within this state of
				 agricultural products, including, but not limited to, field or orchard crops,
				 livestock, dairy, and poultry, or their products, where the keeping, boarding,
				 or production provides at least two thousand five hundred dollars ($2,500) in
				 annual gross sales to the operator, whether an individual, a group, a
				 partnership, or a corporation for exemptions issued prior to July 1, 2002; for
				 exemptions issued or renewed after July 1, 2002, there shall be two (2) levels.
				 Level I shall be based on proof of annual gross sales from commercial farming
				 of at least twenty-five hundred dollars ($2,500) and shall be valid for
				 purchases subject to the exemption provided in this rule except for motor
				 vehicles with an excise tax value of five thousand dollars ($5,000) or greater;
				 Level II shall be based on proof of annual gross sales from commercial farming
				 of at least ten thousand dollars ($10,000) or greater and shall be valid for
				 purchases subject to the exemption provided in this subdivision including motor
				 vehicles with an excise tax value of five thousand dollars ($5,000) or greater.
				 For the initial issuance of the exemptions, proof of the requisite amount of
				 annual gross sales from commercial farming shall be required for the prior
				 year; for any renewal of an exemption granted in accordance with this
				 subdivision at either Level I or Level II, proof of gross annual sales from
				 commercial farming at the requisite amount shall be required for each of the
				 prior two (2) years. Certificates of exemption issued or renewed after July 1,
				 2002, shall clearly indicate the level of the exemption and be valid for four
				 (4) years after the date of issue. This exemption applies even if the same
				 equipment is used for ancillary uses, or is temporarily used for a non-farming
				 or a non-agricultural purpose, but shall not apply to motor vehicles acquired
				 after July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to
				 R.I. Gen. Laws §
										31-1-8 and is eligible for registration displaying farm plates as provided for in R.I.
				 Gen. Laws §
										31-3-31.
C. "Farm equipment" means machinery and
				 equipment used directly for commercial farming and agricultural production;
				 including, but not limited to, tractors, ploughs, harrows, spreaders, seeders,
				 milking machines, silage conveyors, balers, bulk milk storage tanks, trucks
				 with farm plates, mowers, combines, irrigation equipment, greenhouses and
				 greenhouse coverings, graders and packaging machines, tools and supplies and
				 other farming equipment, including replacement parts, appurtenant to or used in
				 connection with commercial farming and tools and supplies used in the repair
				 and maintenance of farming equipment.
D. "Farm structure construction materials"
				 means lumber, hardware and other materials used in the new construction of farm
				 structures, including production facilities such as, but not limited to,
				 farrowing sheds, free stall and stanchion barns, milking parlors, silos,
				 poultry barns, laying houses, fruit and vegetable storages, rooting cellars,
				 propagation rooms, greenhouses, packing rooms, machinery storage, seasonal farm
				 worker housing, certified farm markets, bunker and trench silos, feed storage
				 sheds, and any other structures used in connection with commercial
				 farming.
E. "Horse food products"
				 means horse food products purchased by a person engaged in the business of the
				 boarding of horses.