Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 210 - RETAIL SALES AND USE TAX › Section 23VAC10-210-50 - Agriculture

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. The
				tax does not apply to commercial feeds, seed, plants, fertilizers, liming
				materials, breeding and other livestock, semen, breeding fees, baby chicks,
				turkey poults, agricultural chemicals, fuel for drying or curing crops, baler
				twine, containers for fruits or vegetables, farm machinery and agricultural
				supplies sold to farmers for use in agricultural production for market. Also,
				effective July 1, 1979, the tax does not apply to tangible personal property,
				except structural construction materials, necessary for use in agricultural
				production for market when sold to or purchased by a farmer or contractor or
				furnished to a contractor by a farmer to be affixed to real property owned or
				leased by a farmer. A purchase for personal or family use or consumption is not
				exempt. Exempt items must be purchased under a certificate of exemption. A
				farmer not engaged in the business of producing agricultural products for
				market cannot claim any agricultural exemptions.
The term "structural construction materials" includes but is
				  not limited to the following: silos; barns and sheds; storage bins (not
				  portable); greenhouses, including plastic covered houses; permanent fencing;
				  fuel oil storage tanks; electrical wiring, except for wiring running from
				  special purpose equipment to an on-off switch; plumbing, except as part of
				  special purpose equipment (e.g., water feeding system in poultry house);
				  cattleguards; farrowing houses; and bulk tobacco curing barns. These items are
				  therefore subject to tax.
The term "structural construction materials" specifically
				  excludes the following but may also exclude other items: milking systems;
				  feeding systems; heating systems; artificial insemination equipment; lighting
				  fixtures in poultry houses used for the purpose of extending the daily feeding
				  period of chickens; power outage and water pressure alarm systems; egg cooling
				  equipment, including wall mounted egg coolers; ventilating equipment, to
				  include air inlets, curtains and curtain cables, cords and related fixtures,
				  pull-ups, winches, fans and fan belts, louvers, shutters, motors, static
				  pressure gauges, thermostats and replacement parts; shade cloth; and irrigation
				  lines and sprinkler heads. These items are therefore exempt from tax.
B. Farmer-horse breeder. The
				production for sale of colts on a horse farm is regarded as "agricultural
				production." Horses used exclusively for the purpose of breeding colts for sale
				and the feed and supplies for such horses can be purchased tax exempt by the
				farmer-horse breeder.
Horses purchased for racing or showing are subject to the
				  tax since they are not used exclusively for breeding purposes. The tax must
				  also be paid on feed and supplies for such horses.
C. Commercial tree farming. The production of
				trees for sale or resale is regarded as "agricultural production," so any
				person engaged in commercial tree farming is entitled to the agricultural
				exemption. A person qualifying as a commercial tree farmer must act as any
				other farmer producing an agricultural product for market and must prepare the
				land for sowing, plant the seedlings, mulch the seedlings, nurture the trees,
				and harvest the trees at maturity for future use in commercial operations of
				producing a product for sale or resale.
D. Commercial fish farming. The raising of
				fish for sale or resale is regarded as "agricultural production," so any person
				engaged in commercial fish farming is entitled to the agricultural exemption.
				The exemption is allowed for purchases of commercial feed, fish eggs, and other
				agricultural supplies.
E.
				Commercial worm farming. Effective July 1, 1979, the raising of worms for sale
				or resale is regarded as "agricultural production," so any person engaged in
				commercial worm farming is entitled to the agricultural exemption. The
				exemption is allowed for purchases of worm feed, feed supplements, growing
				medium and other agricultural supplies.
F. Retail sales by farmers. A farmer
				regularly engaged in selling tangible personal property at retail must register
				as a dealer and collect and pay the tax due on retail sales.
The tax applies to regular or recurring sales of farm
				  products by farmers or peddlers or at a public market, roadside stand, farm or
				  any other place.
Statutory Authority
§§ 58.1-203 and 58.1-609.2(1),(3) of the Code of
					 Virginia.