South Carolina Code of Regulations › Chapter 117 - DEPARTMENT OF REVENUE › Article 11 - SALES AND USE TAX REGULATIONS › Section 117-301.5 - Farm Machinery

Current through Register Vol. 48, No. 6, June 28, 2024
The sale of farm machinery that is used in planting,
				cultivating or harvesting farms crops for sale is exempt under Code Section
				12-36-2120(16).
				This exemption also applies to replacement parts and attachments. For purposes
				of this exemption, the terms "planting," "cultivating," and "harvesting" are
				defined as follows:
"Planting" includes all necessary steps in the preparation of
				the soil prior to, and including, the planting and sowing of the seed.
"Cultivating" includes the loosening of the soil around growing
				plants, control of moisture content in the soil, and weed and pest
				control.
"Harvesting" begins with the gathering of the crop and ends
				when the crop is placed in a temporary or permanent storage area. It also
				includes the additional preparation for storage or sale of certain crops such
				as the curing of tobacco, grains, and peanuts and the grading and packaging of
				peaches, cucumbers, tomatoes, etc.
The sale of bulk coolers (farm dairy tanks) used in the
				production and preservation of milk on dairy farms and machines used in the
				production of poultry and poultry products on poultry farms when such products
				are sold in the original state of production or preparation for sale are also
				exempt under Code Section
				12-36-2120(16).
The following machines qualify for this exemption:
(a) machinery used in constructing terraces,
			 drainage and irrigation ditches, dikes used to control the water level in
			 cultivated fields, and land clearing prior to cultivation of the
			 soil.
(b) machinery specially
			 designed for irrigation purposes, including pumps, pipes, spigots, etc., when
			 sold for use in the cultivation of farm crops.
(c) farms wagons used in planting,
			 cultivating or harvesting farm crops.
(d) pasteurizing machines, cooling machines,
			 mechanical separators, homogenizing machines and bottling machines used by
			 dairies in the production of milk for sale. Milking machines do not come within
			 the exemption for farm machinery.
(e) machines used in the production of
			 poultry and poultry products for sale when incorporated into and made a part of
			 an automated system. This includes automated bulk feed bins placed either
			 inside or outside the building when such bins are connected to automatic
			 feeding systems; the auger conveying feed from bulk feed bins to the automated
			 feeder system; roll-up curtains (hand crank and motorized) to control light and
			 room temperature; automatic chain feeders; auger and pan feeders; automatic
			 waterers, valves, and accessories, brooders-all types, winching systems used to
			 raise and lower brooders to control room temperature and also to facilitate
			 cleaning; electric debeakers; egg washing machinery; egg grading machinery; egg
			 candling machinery; time clocks for controlling lights or machinery; automated
			 nests only; belt gathering systems for nests; laying cages when a part or
			 attachment to an automated feeding and/or watering system; mechanically
			 operated feed carts; bulk feed bodies (the vehicles on which these bodies are
			 mounted are subject to the tax as well as nonmechanized carts); automatic
			 clean-out systems for cage houses; small tractor or Bobcat used for clean-out
			 of poultry houses; machinery used to cool eggs; humidifiers for egg rooms;
			 auxiliary power generators; ventilation equipment for poultry houses (to
			 include fans and motorized shutter assemblies); electric heat tapes (water
			 warmers); monorail system for use in conveying eggs in process; automatic
			 medication proportioners; incubators; scales used in loading mixing buggies to
			 gauge the amount of feed per chicken; electric shockers and wire over automatic
			 troughs; (electrified wire fences would be subject to the tax unless exempt
			 under Section
			 12-36-2120(45)
			 ); vibrators; infrared brooders (heat lamps used primarily to brood quail); and
			 incinerators.
Examples of properties not exempted from the tax under Section
				12-36-2120(16)
				 are building materials, fencing and fence
				posts, hand tools, range waterers and feeders (unless completely mechanized),
				egg baskets and stackers, hand trucks and nonmechanized egg carts, dollies,
				brooding paper and guards, nesting materials, boots, gloves, hand-operated
				sprayers and powder dusters, mouse traps (all types), leg bands, wing bands,
				and nest eggs. (Note: Some of these items may be exempt under Section
				12-36-2120(45).)
(f) animal and motor drawn or
			 operated implements such as plows, harrows, hay rakes, mowers, cultivators, and
			 planters.
(g) machinery used in
			 planting, cultivating, and harvesting timber products.
(h) tobacco curers (not including flues and
			 furnaces).
(i) a flatbed trailer or
			 a stock trailer used for hauling farm crops (i.e. hay, corn, peaches) if the
			 flatbed trailer or stock trailer is used substantially in planting,
			 cultivating, or harvesting such farm crops for sale in their original state of
			 production or preparation for sale.
(j) animal and motor drawn or operated
			 tobacco transplanters.
(k) portable
			 power saws for use in planting, cultivating, or harvesting farm crops may be
			 purchased free of the tax. The term "farm crops" includes forest products or
			 products of the forests.
(l)
			 skidders used in logging operations, when used either by sawmills or by
			 contract loggers.
(m) machinery
			 purchased by operators of commercial fisheries and used directly in fishing
			 operations, such as motor operated watercraft and nets attached to booms or
			 cranes for lowering into the sea bed.
(n) machinery purchased by commercial
			 crabbers and used directly in crabbing operations, such as motors, mechanical
			 capstans, and crab traps when such traps are hoisted by capstans.
This exemption does not apply to:
(a) automobiles and trucks.
(b) machinery used in constructing fences and
			 buildings and repairing machinery and equipment.
(c) farm implements which are not animal and
			 motor drawn or operated, such as hoes, pitchforks, and shovels.
(d) tobacco thermometers.
(e) a flatbed trailer or a stock trailer used
			 for hauling tractors, harvesting equipment or cattle or for hauling farm crops
			 from a storage area to market or to a buyer.
(f) tobacco transplanters which are not
			 animal and motor drawn or operated.
(g) greenhouses.